A former executive at Five Star Bank’s parent company will receive $525,000 under a separation agreement with the bank.
Warsaw-based Financial Institutions announced last April it was removing Karl F. Krebs as executive vice president and chief financial officer. His departure was among several management changes the bank made after replacing its chief executive officer.
Krebs was entitled to be paid $175,000 within 15 days of written payment instructions from Krebs. The remaining $350,000 will be paid in equal biweekly installments over two years. The agreement was dated Sept. 10 and was disclosed in a regulatory filing last week.
Krebs had been executive vice president and CFO at Financial Institutions since October 2009; Kevin B. Klotzbach now serves in those roles. Last March, Martin K. Birmingham was named president and CEO, succeeding Peter Humphrey, who had resigned in summer 2012.
A copy of Krebs’s separation agreement is expected to be filed with the company’s quarterly report for the quarter that ends Sept. 30.