Bank CEO’s leap to Lumber Liquidators brings large pay bump

John Presley

John Presley

A longtime local banker’s move to become head of a nearby retail giant comes with a new, larger pay package and a few parting gifts.

John Presley, who on Friday stepped down as CEO of Glen Allen-based First Capital Bancorp, started Monday in his new role as chief executive of Lumber Liquidators.

The gig at the Toana-based wood flooring retailer, which has struggled with controversy in recent months, will nearly double Presley’s pay package, according to SEC filings.

Lumber Liquidators disclosed that Presley will receive a base salary of $625,000. That’s compared to the $325,000 salary Presley was paid at First Capital in 2014, which was part of a total compensation package valued at $502,000, according to SEC filings.

Presley, who has been on the Lumber Liquidators board since 2006 and its chairman since May, also received stock options for 150,000 shares of the company’s stock, to be exercised over three years. The stock currently trades at around $14 a share, which is down from a high of $70 earlier this year.

He’ll additionally be eligible to earn a performance bonus beginning next year with a target payout equal to 100 percent of his base salary.

And Presley isn’t leaving First Capital empty-handed.

SEC filings show he signed a consulting agreement with the bank that will pay him $15,000 a month from now until the consummation or termination of First Capital’s pending deal to be acquired by Charlotte-based Park Sterling Bank. The transaction, valued at $82 million, is expected to close in the first quarter of 2016.

First Capital Bank's downtown branch at 901 E. Cary. (Photo by Michael Schwartz)

First Capital Bank’s downtown branch at 901 E. Cary St. Photo by Michael Schwartz.

The agreement requires Presley to provide the bank support on operational, regulatory, merger and other matters for no more than 20 hours per week without his consent.

He’s also due a $130,925 lump sum cash payout by the end of the month, which represents a pro-rated portion of his 2015 incentive bonus. And within five business days after the closing of the Park Sterling deal, Presley is to receive a cash payment of $1.56 million, minus some funds related to taxes.

His agreement with First Capital also includes various non-compete and non-solicitation agreements.

Presley led First Capital since 2008, helping bring it back to steadier ground after the recession and steering it into the Park Sterling deal.

Presley, 55, declined an interview last week to discuss his time at First Capital and his thoughts on his new position at Lumber Liquidators.

In light of his departure for Lumber Liquidators, Presley will not take on a previously announced 30-month consulting agreement with Park Sterling.

Bob Watts is running First Capital in the interim. He has been president of the bank, but now oversees the company in its entirety, until the closing of the Park Sterling deal, when he’ll take on a lesser, senior role.

Presley will continue to serve on the board of both the First Capital holding company and the bank.

John Presley

John Presley

A longtime local banker’s move to become head of a nearby retail giant comes with a new, larger pay package and a few parting gifts.

John Presley, who on Friday stepped down as CEO of Glen Allen-based First Capital Bancorp, started Monday in his new role as chief executive of Lumber Liquidators.

The gig at the Toana-based wood flooring retailer, which has struggled with controversy in recent months, will nearly double Presley’s pay package, according to SEC filings.

Lumber Liquidators disclosed that Presley will receive a base salary of $625,000. That’s compared to the $325,000 salary Presley was paid at First Capital in 2014, which was part of a total compensation package valued at $502,000, according to SEC filings.

Presley, who has been on the Lumber Liquidators board since 2006 and its chairman since May, also received stock options for 150,000 shares of the company’s stock, to be exercised over three years. The stock currently trades at around $14 a share, which is down from a high of $70 earlier this year.

He’ll additionally be eligible to earn a performance bonus beginning next year with a target payout equal to 100 percent of his base salary.

And Presley isn’t leaving First Capital empty-handed.

SEC filings show he signed a consulting agreement with the bank that will pay him $15,000 a month from now until the consummation or termination of First Capital’s pending deal to be acquired by Charlotte-based Park Sterling Bank. The transaction, valued at $82 million, is expected to close in the first quarter of 2016.

First Capital Bank's downtown branch at 901 E. Cary. (Photo by Michael Schwartz)

First Capital Bank’s downtown branch at 901 E. Cary St. Photo by Michael Schwartz.

The agreement requires Presley to provide the bank support on operational, regulatory, merger and other matters for no more than 20 hours per week without his consent.

He’s also due a $130,925 lump sum cash payout by the end of the month, which represents a pro-rated portion of his 2015 incentive bonus. And within five business days after the closing of the Park Sterling deal, Presley is to receive a cash payment of $1.56 million, minus some funds related to taxes.

His agreement with First Capital also includes various non-compete and non-solicitation agreements.

Presley led First Capital since 2008, helping bring it back to steadier ground after the recession and steering it into the Park Sterling deal.

Presley, 55, declined an interview last week to discuss his time at First Capital and his thoughts on his new position at Lumber Liquidators.

In light of his departure for Lumber Liquidators, Presley will not take on a previously announced 30-month consulting agreement with Park Sterling.

Bob Watts is running First Capital in the interim. He has been president of the bank, but now oversees the company in its entirety, until the closing of the Park Sterling deal, when he’ll take on a lesser, senior role.

Presley will continue to serve on the board of both the First Capital holding company and the bank.

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Jeff Crook
Jeff Crook
6 years ago

Why is this a story?