REGIONS FINANCIAL CORPORATION (NYSE:RF) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain OfficersITEM 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On June 19, 2018, the Board of Directors ("Board") of Regions Financial Corporation ("Regions" or the "Company") appointed Timothy Vines and John M. Turner, Jr. to Regions' Board, effective July 2, 2018. The appointment of Messrs. Vines and Turner increases the size of Regions' Board to fifteen (15) members. There are no arrangements or understandings with other persons to which Mr. Vines nor Mr. Turner were selected as Directors.
Mr. Vines (52) is the President and Chief Executive Officer of Blue Cross and Blue Shield of Alabama ("BCBSAL"), an independent licensee of the Blue Cross and Blue Shield Association and the largest provider of healthcare benefits in Alabama. He has worked at BCBSAL for more than 23 years and previously served as chief operating officer, chief administrative officer, as well as in other leadership roles. Mr. Vines holds a degree in finance from Auburn University.
Mr. Turner (56) was named President of Regions Financial Corporation and Regions Bank in December 2017. In late April 2018, Regions announced he would become Chief Executive Officer and a member of its Boards of Directors as of July 2, 2018, when Chairman and Chief Executive Officer Grayson Hall transitions to Executive Chairman of the Board and of Regions. Mr. Turner joined Regions in 2011 as Regional President of the South Region and was named head of Regions' Corporate Banking Group in 2014. Before joining Regions, he was President and a member of the Board of Directors at Whitney National Bank and Whitney Holding Company. He joined Whitney in 1994 as its Alabama regional president after nine years at AmSouth Bank.
At its meeting on June 19, 2018, the Compensation and Human Resources Committee of the Company's Board of Directors (the "CHR Committee") determined the base salary and target annual cash incentive award that Mr. Turner will receive in his new role. As of July 2, 2018, Mr. Turner is receiving an increase in his base salary to an annualized amount of $950,000, and he will be eligible to receive an annual cash incentive award with a target value of 160% of his base salary. Mr. Turner received an annual long-term incentive award, valued at $1.75 million as of the grant date of April 2, 2018, with the award allocated equally among restricted stock units, performance stock units and performance cash units. The CHR Committee anticipates that the award granted to Mr. Turner in 2019 as CEO will have an estimated value of $4.375 million. Also, Mr. Turner entered into a new change-in-control agreement with the Company, entitling him to three times multiple of pay upon termination without "cause" or for "good reason" during the two-year period following a change-in-control. If his employment is terminated for "cause" or due to death, disability, or resignation other than for "good reason," payments would be limited to accrued compensation and benefits. Additional information about Regions' executive compensation program can be found in its 2018 Proxy Statement. Mr. Turner will be eligible to use Company aircraft for personal trips for up to $100,000 in accordance with the Company's existing aircraft policy, as described in Part IV of the Company's Annual Report on Form 10-K for the year ended December 31, 2017. There were no other changes to Mr. Turner's employment
arrangement relating to his new role. The CHR Committee affirmed that Mr. Hall's compensation and other benefit arrangements will continue with no changes in connection with his appointment as Executive Chairman.
Mr. Vines was awarded restricted stock under the Regions Financial Corporation 2015 Long Term Incentive Plan, as of July 2, 2018, in an amount equal to $100,000, which is the prorated amount of the annual equity retainer paid to Regions' compensation program for Directors that applies uniformly to all non-employee Directors. The restricted stock is subject to a continued service requirement, and the restrictions lapse on the date of the 2019 Annual Meeting of Stockholders, or earlier in the case of death or disability or upon termination without cause following a change of control of Regions.
Regions and BCBSAL have arms-length business relationships; each provides products and services to the other in the ordinary course of business. Regions' medical and dental benefit plans offered to associates are administered by BCBSAL. The plans are self-insured and Regions reimburses BCBSAL for claims, which reimbursements are not included in BCBSAL's revenues. Regions pays approximately $8.6 million annually in administration fees. BCBSAL conducts normal and customary banking business with Regions, including a line of credit, outstanding loans, monthly deposits, trust and custodial services. Regions Bank receives fees on these accounts and services from BCBSAL. These relationships commenced before Mr. Vines was appointed to Regions' Board and are expected to continue. Mr. Vines does not have a direct or indirect material interest in the transactions arising out of the business relationships between Regions and BCBSAL, and Mr. Vines has no material relationships with Regions that would impair his exercise of independent judgment as a Director.
Mr. Vines and certain of his related persons and their affiliates, and Mr. Turner and certain of his related persons and their affiliates, have engaged in lending and other ordinary banking transactions with Regions' subsidiaries. All loans and loan commitments and any transactions involving other financial products and services relating to these transactions were made in the ordinary course of business, on substantially the same terms, including current interest rates and collateral, as those prevailing at the time for comparable transactions with others and did not involve more than the normal risk of collectability or present other unfavorable features.
Messrs. Vines and Turner were also appointed as Directors of Regions Bank, a wholly-owned subsidiary of Regions. Mr. Vines will serve on the Audit Committee and the Compensation and Human Resources Committee of Regions' Boards of Directors.
ITEM 9.01Financial Statements and Exhibits.
(d) Exhibits.
Exhibit Index
Exhibit No.Exhibit
REGIONS FINANCIAL CORP ExhibitEX-99.1 2 a06-19x18pr.htm EXHIBIT 99.1 Exhibit EXHIBIT 99.1Media Contact:Evelyn MitchellRegions Bank 205-264-4551www.regionsbanknews.comRegions News on Twitter: @RegionsNewsTimothy Vines and John Turner Appointed to the Regions Board of Directors BIRMINGHAM,…To view the full exhibit click here
About REGIONS FINANCIAL CORPORATION (NYSE:RF)
Regions Financial Corporation is a financial holding company. The Company conducts its banking operations through Regions Bank, an Alabama state-chartered commercial bank, which is a member of the Federal Reserve System. It operates in three segments: Corporate Bank, which represents its commercial banking functions, including commercial and industrial, commercial real estate and investor real estate lending; Consumer Bank, which represents its branch network, including consumer banking products and services related to residential first mortgages, home equity lines and loans, small business loans, indirect loans, consumer credit cards and other consumer loans, as well as the corresponding deposit relationships, and Wealth Management, which offers individuals, businesses, governmental institutions and non-profit entities a range of solutions to enable transfer of wealth. It provides traditional commercial, retail and mortgage banking services, as well as other financial services.
