Riggs Officials Are Eligible for Severance Pay

WASHINGTON -- Riggs National Corp. executives are eligible to receive more than $7 million in severance pay if they leave after the company's sale to PNC Financial Services Group Inc., according to a Securities and Exchange Commission filing, Dow Jones reported Thursday.

The filing also said the executives could receive another $2.2 million from cash payouts of unvested stock options.

The parent company of beleaguered Riggs Bank agreed last month to be acquired by Pittsburgh-based PNC for $779 million in stock and cash. U.S. regulators earlier this year fined Riggs $25 million for a range of money-laundering violations related to its oversight of accounts held by diplomats.

Robert L. Allbritton, chairman and chief executive, would receive a payment of $850,000 if the deal is completed by January and if he is terminated without cause or quits for good reason after the merger is finalized, according to the SEC filing.

-- NYSSCPA.org News Staff

Posted on 8/12/04