BB&T, SunTrust Promise Bonuses to 40,000 Employees After Merger Closes
(Clarifies terms around Rogers’ compensation in third paragraph from end.)
After shareholders of BB&T Corp. and SunTrust Banks Inc. on Tuesday approved the southern banks’ $29.7 billion “merger of equals,” executives sent out a memo promising to pay $1,500 bonuses to 40,000 bank employees when the deal closes.
A SunTrust spokesman confirmed the $1,500 employee bonus but declined to comment on the broker retention loans.
A BB&T spokesman declined to comment on the bank-wide bonuses and on whether the more than 300 brokers at BB&T (Scott & Stringfellow) Securities received retention bonuses.
About 98% of BB&T shareholders and almost 99% of SunTrust’s approved the bank merger on Tuesday. About 96% of BB&T shareholders okayed the plan to rename the combined banks Truist Financial Corp. (SunTrust shareholders did not vote on the name change.)
The merger would be the largest banking deal since January 2009, when Bank of America bought Merrill Lynch, and would create the sixth largest bank in the U.S.
It is expected to close in late September or early October, pending approval from the Federal Reserve Board and the Federal Deposit Insurance Corp., the memo said.
“We’ve passed yet another significant milestone,” SunTrust Chairman and CEO William H. Rogers Jr. and BB&T Chief Executive Kelly King wrote in the internal memo to employees. “Whether you’re in a client-facing role handling questions, working in a support role on merger-related activities or helping us conduct business as usual in the midst of all this activity, we realize your dedication is critical.”
The $1,500 bonus will be paid to about two-thirds of the combined banks’ approximately 60,000 employees, according to the memo. People in high-ranking jobs, or who are paid primarily in commissions, will not receive the special payment.
Shareholders at SunTrust on Tuesday also approved a compensation package for Rogers, who will be president and chief operating officer of Truist, and assume the CEO and chairman roles when King retires in 2022. He will receive a base salary of $1.1 million and is eligible for a “golden parachute” of $30.69 million in stock, cash and perquisites if he leaves the company under certain circumstances, according to SunTrust’s proxy statement.
Truist Financial will be headquartered in Charlotte, N.C., also the home of Bank of America. BB&T’s corporate headquarters is currently in Winston-Salem, N.C., while SunTrust and its wealth businesses are based in Atlanta.
BB&T Scott & Stringfellow has its headquarters in Richmond, Va.