SunTrust executive to become consultant

SunTrust said Thursday that its vice chairman, William Reed, will retire at the end of August and become a consultant to the company.

In his new role, Reed will be paid $251,000 a year for two years and work no more than 30 hours a month, according to his contract, disclosed in a regulatory filing.

That amounts to at least $697 per hour.

SunTrust, which got $4.84 billion in federal aid last winter, said Reed’s tasks will include promoting the business interests of the bank in the Memphis area.

Reed will also get $100,000 in September 2011 for signing a non-compete clause and waiving any claims against the company.

A SunTrust spokesman called the package “competitive” and based on the value Reed is expected to bring to the organization.

Reed, who is in his early 60s, once was seen as a possible successor to SunTrust CEO James M. Wells. But last December, SunTrust shook up its management team, stripping Reed of some duties.

Reed joined the company after SunTrust merged in 2004 with National Commerce Financial Corp., where he was president and CEO. His 2008 compensation package was worth $3.4 million.