Newspaper article THE JOURNAL RECORD

Armacost Resigns as Ceo, President of Bankamerica

Newspaper article THE JOURNAL RECORD

Armacost Resigns as Ceo, President of Bankamerica

Article excerpt

SAN FRANCISCO - Samuel H. Armacost, president and chief executive officer of embattled BankAmerica Corp., announced his resignation Friday after five stormy years at the helm of the nation's second-largest banking concern.

Armacost, 47, said it was necessary to end his 25-year career at San Francisco-based BankAmerica because the bank's image had been ""so eroded by rumor and speculation" that a change in management is necessary to help restore confidence in the organization.

""The best interests of our shareholders, customers and employees have always been my principal concern," he said, "and if my stepping aside serves that purpose, I do so willingly."

Armacost, who received $575,000 in compensation last year, also is covered by a ""golden parachute'' severance agreement valued at $1.7 million.

The company's board of directors will meet on Sunday to act on the resignation and to name a successor.

BankAmerica Corp. currently is considering a $2.77 billion merger proposal by First Interstate Bancorp of Los Angeles, which owns First Interstate of Oklahoma NA. Twice earlier this year, Armacost year rebuffed informal merger overtures by First Interstate.

Analysts said Armacost's resignation could give the company more time to consider First Interstate's merger offer.

A First Interstate's spokesman was not immediately available for comment on Armacost's departure. Nor was a spokeswoman for Security Pacific Corp., which has offered to help BankAmerica remain independent and indicated it might be willing to buy some BankAmerica assets.

Armacost's announcement fueled rumors that his predecessor, former World Bank president A. …

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