Insurgents Claim Victory Over 'Greedy'Directors At CU-Convert
CRANFORD, N.J. - (04/07/06) -- Dissident shareholders at ex-creditunion Synergy Financial were claiming the ouster of two long-timedirectors they attacked for excessive enrichment at the creditunion-turned-bank. "Based on communications we've had with othershareholders, we think we've won. But we won't know for sure untilit's official," Richard Lashley, a principal partner in PL Capital,told The Credit Union Journal of the board elections thatculminated at this week's annual meeting. Lashley's group, whichowns a 9.8% stake in the former credit union, has been waging aproxy contest to win two of the three seats open in this year'sboard elections against three long-time incumbents who helpedconvert the institution, known until January 1999 as Synergy FCU. ASynergy Financial representative said the official results of theproxy contest won't be released until next week. PL Capital faultedthe incumbents for paying themselves more than outsideshareholders, noting that Paul Fiore, current CEO and director, waspaid almost $4.5 million in stock and cash since the ex-creditunion went public three years ago; while the other two directorsseeking reelection, Nancy Davis and Phil Scott, earned more than$500,000 during that time. In all, directors and top managersearned more than $14 million in compensation during that time,almost $2 million more than was paid to outside shareholders,according to proxy materials submitted to the Securities andExchange Commission.