Frank P. Bramble, chairman of Allfirst Financial Inc., which lost $691.2 million in a currency trading scandal, will receive a lump-sum payment of $2.9 million in connection with his retirement, according to a document filed with a federal regulatory agency.
Bramble, 53, will step down as Allfirst's chairman after its annual meeting April 30. He will also retire from the company June 1, four months after the bank revealed huge trading losses that rocked the Baltimore-based institution and its Irish parent, Allied Irish Banks PLC.
An Allfirst spokesman said the payment is a restructuring of Bramble's pension.
"It was restructured, there was a new agreement made," said Philip H. Hosmer, the Allfirst spokesman.
"This is just a lump-sum payment that replaces the supplemental employment retirement plan."
Under the prior arrangement, when Bramble turned 60 he would have been entitled to a yearly payment of 60 percent of the average of his three highest years of compensation.
The payment would be minus anything he would have received under the company's pension, Social Security and from benefits of former employers, according to a document filed this week with the Securities and Exchange Commission.
The arrangement was contingent on Bramble working at the bank until he was 60, Hosmer said.
Bramble was on vacation and could not be reached for comment.
Bramble received a salary of $725,000 and no bonus last year, according to the document. In 2000, he made $725,000 in salary and $435,000 in bonus for total compensation of $1.16 million.
Bramble was still the highest-paid executive at Allfirst, according to the document.
Susan C. Keating, Allfirst's president and chief executive, made $675,000 last year and did not receive a bonus.
Keating made $600,000 in salary in 2000 and received a $336,000 bonus for total compensation of $936,000.
Harry E. Berry, an executive vice president at Allfirst, made $315,000 in salary last year and received no bonus. He was paid a salary of $300,000 in 2000 and a $180,000 bonus for a total package of $480,000.
Bramble joined Allfirst in April 1994 as chief executive. In addition to being the company's chairman, he was chief executive of Allied Irish PLC's USA division.
After Allfirst's April board meeting, Eugene C. Sheehy, 48, will become chairman of the company and a director. Sheehy, who was named chief executive of Allied Irish's U.S. operations last month, was a managing director of AIB Bank in Ireland.
Sheehy takes over in the aftermath of a scandal that the company blamed on John M. Rusnak, the Allfirst currency trader who skirted internal controls and racked up losses over five years.
An internal investigation painted a damning picture of the bank, saying it was rife with lax management and weak internal controls.