Midwest Banc Holdings Inc. of Melrose Park, Ill., has delayed payment of severance to James Giancola, its former chief executive, as it awaits clarification on compensation restrictions under the federal stimulus law enacted last month.
In a preliminary proxy statement filed last week, the $3.6 billion-asset company said Giancola normally would have received $481,200. "Midwest has advised Mr. Giancola that it will be unable to make this payment until it receives further guidance from the Treasury," it said in the filing.
Midwest received $84.8 million in Troubled Asset Relief Program funds in December. The law forbids the payment of golden parachutes by recipients of Tarp funds.
Jay Fritz succeeded Giancola in January after the board decided to refocus the company on organic growth.