A month after Sovereign Bancorp Inc. took at $1.6 billion pre-tax hit blamed on market instability related to the subprime mortgage mess, the company has announced it is replacing its CFO, Mark McCollom.
Sovereign said that McCollom’s departure was “without cause,” but that he and the company were in mutual agreement regarding his resignation, according to a regulatory filing. Company representative Ed Schultz told CFO.com that the company make no further comment beyond what was released in the Securities and Exchange Commission filing.
McCollom, who joined Sovereign in 1996, will end his stint as finance chief on March 3, but he will stay with the company through the end of May to help with the transition of his successor Kirk Walters.
Walters was previously CFO of Chittenden Corp., which was acquired by People’s United Financial Inc. this January. He oversaw the finances at Chittenden since 1996.
As part of his separation agreement, McCollum will receive a $2.1 million cash payment, a $450,000 non-solicitation payment, $225,500 incentive award, $150,000 in consulting fees over the next year, and three years of life, medical and disability insurance, according to the SEC filing.
In a company statement CEO and president Joseph P. Campanelli, thanked McCollom for his commitment and said he has been “a valuable member of our senior management team for the past 12 years.”