By Virginia Lascara
virginia.lascara@insidebiz.com
Virginia Beach Mayor Will Sessoms resigned his position as president of Towne Financial Services Tuesday, taking early retirement, as a result of a new corporate policy adopted by TowneBank last month that forbids executive management team members from holding public office.
The new policy, approved by TowneBank’s board of directors on Nov. 26, required Sessoms to choose between giving up his position as mayor of Virginia Beach or his position at TowneBank.
Sessoms, 60, has been mayor of Virginia Beach since 2009 and has been employed by TowneBank since 2005.
"In light of a new policy being initiated at TowneBank beginning this January, I have decided to resign and take early retirement from TowneBank effective immediately," Sessoms said in a statement. "Next to my own family the TowneBank family remains near and dear to my heart."
“Because this new requirement is retroactive, meaning Will could not have known when he ran for political office that the policy would change, we are rightfully honoring all of the financial terms under his 2005 employment contract and his retirement plan,” said Bob Aston, chairman and CEO of TowneBank.
Under those contracts, Sessoms will receive three years of his current base salary of $425,000 as well as health and life insurance and other benefits. Starting at age 65, for 15 years, Sessoms will receive annual retirement of $215,104.
TowneBank will also reimburse Sessoms’ attorneys’ fees up to $125,000 that are incurred in connection with the ongoing review of votes cast by Sessoms in relation to the Virginia Conflict of Interests Act, a statement from the bank said.
“We are grateful for the exceptional leadership that Will has provided to our Financial Services Group and to our entire company. All of us here in the Towne family thank him for all of his many contributions and wish him well in his future endeavors,” said Aston in a prepared statement.
Aston and TowneBank president J. Morgan Davis will temporarily assume Sessoms’ duties as president and CEO of Towne Financial Services.