PL Capital Group of Naperville, Ill., has voiced its opposition to proposed changes in the stock option plans of Lake Shore Bancorp Inc. of Dunkirk, N.Y.
Lake Shore stockholders will vote on the proposed changes at a meeting Wednesday. They call for stock options to become immediately exercisable upon the holder's retirement, and they would eliminate limits on how many options can be granted to any nonemployee director.
PL Capital said Tuesday that the changes would go against "proper compensation and benefit practices and shareholders' interests" asked Lake Shore's board to revoke the proposals.
The $354 million-asset Lake Shore was created last year when Lake Shore Savings and Loan Association was reorganized into a mutual holding company. At that time the holding company sold 45% of its shares to the public. PL Capital owns 6.1% of the outstanding shares.