CRANFORD, N.J. - (02/06/06) A group of banking speculatorsagitating for a bigger payout at ex-credit union Synergy Financialnamed two nominees for the savings banks board last week,part of an escalating proxy battle. If elected, the two nomineeswill push the board to pursue strategies to enhance shareholdervalue, including paying down some of the former creditunions $95 million in capital to finance more stockbuybacks, according to John Lashley, whose investment partnershipPL Capital has amassed a 9.9% stake in the bank. Lashley, whosefirm has become Synergy Financials largest shareholder, saidthey believe the management and board have overpaid themselves fromcompany coffers and should be more generous with the rest of theshareholders. Now that they got paid its time to takecare of the shareholders, Lashley told The Credit UnionJournal, of more than $14 million in stock and cash benefits paidto top managers and directors since the credit union-convert wentpublic three years ago. Proxy materials filed with the Securitiesand Exchange Commission show that Synergy Financial CEO John Fiore,who engineered the 1999 conversion from credit union, was paidalmost $4 million in compensation since then and has compiled anownership stake of almost $3 million in stock, including $1.6million in stock grants the last two years. Two other long-timedirectors, Nancy Davis and Kenneth Kaspar, who helped convertSynergy FCU to a mutual then stock-owned institution, have amassedstock worth more than $800,000 during that time. Each of the formervolunteer credit union directors also receives $25,000 in annualboard fees. Synergy Financial filed proxy materials with the SECFriday calling on shareholders to support the three incumbentsrunning for reelection to the board, including Fiore, Davis andPhil Scott, and to reject the PL Capital overtures.
-
In this week's edition of the American Banker news quiz, gauge your understanding of topics like Trump's ongoing criminal trial, alleged misconduct within the Federal Deposit Insurance Corp., industry succession planning and more.
6h ago -
Many banks got shares in the lucrative payments network when it went public in 2008. Some of them are now looking to sell in order to offset losses on their sales of underwater bonds.
May 9 -
Depositors are still flocking to online-only banking platforms offered by companies such as Ally, Capital One and Discover. But overall customer satisfaction took a "statistically significant" drop, according to a new J.D. Power report.
May 9 -
Executives of Allegiant, Breeze and Spirit complained to the heads of the Consumer Financial Protection Bureau and Department of Transportation that the relationships between big banks and big airlines are anticompetitive. Consumer advocates also questioned whether large airlines are delivering on promised rewards and if consumers are racking up debt to accrue miles and points.
May 9 -
The Federal Reserve Thursday released a report on its climate stress test pilot assessing the impact of climate change on big bank portfolios and found that loan defaults could increase as a result of climate events and shifts toward a lower carbon economy.
May 9 -
Banks are turning to the same hyperscalers for cloud computing and generative AI. Some wonder what the consequences will be down the road.
May 9