Hartford Business Journal

4 Hartford Business Journal • September 17, 2018 • www.HartfordBusiness.com Week in Review Briefs CBIA: Unemployment benefit hike a concern Connecticut may diminish its Unemployment Trust Fund faster than expected when the state labor department raises its weekly unemployment benefit by $18 next month, the state's largest business lobby said. On Oct. 7, the state Department of Labor (DOL) is scheduled to raise its weekly unemployment benefit from $613 to $631, the largest amount allowed under state law. The higher benefit aims to align with wage increases, although it means the state's unemployment fund "may be depleted faster than it would under current limits," said CBIA lobbyist Eric Gjede. Connecticut's unemployment fund balance is over $619 million, which is 38.1 percent less than its $1 billion solvency goal, DOL said. The state issues about 35,000 unemployment payments each week, amounting to $12 million. The state's failure to pass reforms that would restore the fund's solvency during the last two legislative sessions has caused its poor health, CBIA said. Cigna launches $250M venture fund Bloomfield health insurer Cigna said it has committed $250 million to a corporate venture fund meant to spur healthcare startup growth. Named Cigna Ventures, the fund is aimed at investing in new, innovative healthcare companies focused on improving care quality, affordability, choice and more. Cigna said it will use the venture fund to identify early stage companies specializing in several areas: digital health and retail; insights and analytics; and care delivery/management. Stanley stakes $234M to enter lawn-garden sector New Britain hand- and electric-tool producer Stanley Black & Decker says it will pay $234 million cash for a stake in an Ohio outdoor lawnmower maker to expand Stanley's footprint into the lawn- and-garden sector. Stanley announced a definitive pact with MTD Products Inc. for a 20 percent stake and that it is contractually set to acquire the remaining 80 percent, beginning July 1, 2021. Stanley says it expects to close on its initial stake sometime in early 2019. With $2 billion in annual revenue and based in Valley City, Ohio, MTD is best known for its Cub Cadet power push and riding lawnmowers, Troy-Bilt garden tillers and Remington chainsaws. CT economic promoters named among N. America's top 50 Two Connecticut business promoters have been named among North America's top 50 economic development professionals, according to a national consulting agency. The 2018 list of North America's Top 50 Economic Developers by Consultant Connect, a firm bridging economic developers and site consultants, included MetroHartford Alliance CEO David Griggs and Jason Giulietti, vice president of business recruitment at the Rocky Hill-based Connecticut Economic Resource Center (CERC). Michigan-based Consultant Connect said winners were selected by industry leaders in economic development and site consulting for demonstrating "excellent practices, innovation, and success in building" communities. In February, Griggs was recruited from Minnesota to lead MetroHartford Alliance, the region's economic- development promoter, after serving the Greater Minneapolis St. Paul Regional Economic Development Partnership for over six years. Giulietti, named to Hartford Business Journal's 40 Under Forty class in 2011, works on business and recruitment development for CERC, a nonprofit public-private economic development partnership. TOP STORY Amid layoffs, acquisition payday looms for Farmington Bank execs T he CEO of Farmington Bank's parent and his top lieutenants will collect an estimated $14.8 million in cash severance and other payments once People's United Financial Inc.'s purchase of the community lender is complete, proxy documents show. Shareholders in First Connecticut Bancorp Inc., Farmington Bank's parent, will vote Sept. 25 at The Farmington Club on the proposed $544 million deal with Bridgeport thrift People's United Financial Inc., according to papers First Connecticut filed with the U.S. Securities and Exchange Commission. The Aug. 22 severance-pay disclosures, which are estimates based on multiple assumptions, come as First Connecticut recently notified Connecticut state labor authorities of its plans to lay off about one in four of its Farmington Bank staff, or about 95 workers, once the deal is consummated, now targeted for completion on or about Oct. 1. According to SEC filings, John Patrick Jr., chairman, CEO and president of Farmington Bank and its parent, will draw a severance package worth $6.1 million, including a cash severance payment and prorated annual bonus totaling $2.2 million. Four other top Farmington Bank executives also are eligible for cash severance, retirement, equity and other benefits tied to "change of control'' and related provisions under their employment contracts, SEC documents show. BY THE NUMBERS $631 The new maximum weekly unemploy- ment benefit in Connecticut starting Oct. 7, which is increasing from $613. 5% The percentage of business leaders who approve of the state legislature's handling of the economy and job creation, according to a new survey published by the Connecticut Busi- ness & Industry Association (CBIA). 61% The percentage of business lead- ers who say Connecticut's business climate is on the decline, according to that same CBIA survey. $14.8M The total estimated pay package that will be collected by Farmington Bank's top five executives once its buyout by People's United Financial Inc. is complete. TOP 5 MOST READ On HartfordBusiness.com • 1. Farmington Bank to shed 27% of workforce after $544M People's United deal • 2. CT sues over $11M drug-billing fraud • 3. Kickbacks derail Glastonbury man • 4. Mohegan selected to oversee Canada gaming, entertainment venues • 5. SLAM merger opens door to Hollywood STAY CONNECTED For breaking and daily Greater Hartford business news go to www.HartfordBusiness.com HBJ on Twitter: @HartfordBiz HBJ on Facebook: www.facebook.com/HartfordBiz HBJ on Linkedln: www.linkedin.com/company/ the-Hartford-Business-Journal Daily e-newsletters: HBJ Today, CT Morning Blend www.HartfordBusiness.com/ subscribe Weekly e-newsletters: CT Health Care Weekly www.HartfordBusiness.com/ subscribe PHOTO | HBJ FILE David Griggs, CEO, MetroHartford Alliance Farmington Bank's John Patrick Jr. will depart after the People's United deal closes.

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