Robert J. Mylod has been excoriated for the erratic performance of Michigan National Corp., but the executive is responding vigorously and may yet confound his critics.
Chairman and chief executive of the $9.2 billion-asset banking company, Mr. Mylod has covered a lot of ground since his roast by outspoken shareholders at the spring annual meeting.
The banker sold Michigan National's Texas banking subsidiary and is expected to wind down the company's California operations as well. Mr. Mylod also sold the bulk of the bank's sickly mortgage operations, winning release from a supervisory agreement with the Office of the Comptroller of the Currency.
On top of that, Mr. Mylod unveiled a massive streamlining effort that will eliminate 1,000 jobs and entail a $62 million pre-tax restructuring charge in the fourth quarter. This month, Michigan National also said it would repurchase 14% of all shares outstanding in a tender offer worth $175 million.
To be sure, some analysts continue to issue rather strident predictions that Michigan National will be forced to sell.
But an accounting consequence of the massive share repurchase is that acquirers can't buy Michigan National in a stock-swap, at least not without some steps that only Mr. Mylod can take. And the general collapse of bank stock trading multiples further dampens the prospects for a sale on lucrative terms.
Thus, Mr. Mylod may still be collecting paychecks at Michigan National long after his detractors have moved on.