Ex-CU Surrenders Shareholders List InProxy Battle
CRANFORD, N.J. - (02/27/06) Managements of converted creditunion Synergy Financial agreed after a court hearing last week tosurrender its shareholder list to a group of insurgent shareholderstrying to oust three of its incumbents from the board. Theshareholders list will allow PL Capital to solicit proxies fromother shareholders in its bid to carve out a foothold on the boardof the savings bank, formerly known as Synergy FCU. PL Capital,which has mounted similar proxy contests at as many as 10 othersmall banks and thrifts, has criticized the management and board ofSynergy Financial for what it calls excessive insider compensationand wants the former credit union to redirect some of its amassedcapital to other shareholders. At stake in this years boardelections are two of the three seats held by three long-timedirectors who helped convert the credit union to mutual savingsbank in 1999, including President and CEO John Fiore, Nancy Davisand Phil Scott. I think our fellow shareholders will be veryinterested to see our proxy materials, which itemize how much valuethe insiders of Synergy have received versus how much net incomeSynergy has earned for its shareholders, said RichardLashley, one of the principals of PL Capital. Synergy managementand directors have been paid more than $14 million in stock andcash compensation since the ex-credit union went public three yearsago, including more than $4.5 million paid to Fiore, according toPL Capital.