Commerce Bank Founder Loses Bid For $17M Parachute

Law360, New York (May 21, 2013, 8:53 PM EDT) -- A New Jersey federal jury on Tuesday sided with Commerce Bancorp in a breach of contract suit, ruling the bank was legally prohibited from paying its founder and former CEO Vernon W. Hill II a $17.2 million severance due to federal regulations governing "golden parachute" payments.

Attorneys for Commerce successfully argued that while the bank's directors wanted to pay Hill his severance, the bank couldn't do so without violating standards set forth by the Federal Deposit Insurance Corp. Hill's suit, first filed in January 2008, said...
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