Bryn Mawr Bank (BMTC) in Pennsylvania will call a special meeting of shareholders to approve a new equity compensation plan after certain stock awards ran afoul of the Nasdaq.
The $2.1 billion-asset company disclosed in a regulatory filing last week that it "inadvertently" violated a Nasdaq rule when it issued roughly 6,600 shares of stock to six directors. Bryn Mawr said the exchanged informed it that the stock was not part of a shareholder-approved plan.
The Nasdaq granted the company an extension to comply with its rule. Bryn Mawr plans to hold a special meeting to have shareholders approve a plan to "retroactively cover" the shares' issuance. In addition, the directors agreed not to vote or sell those shares or participate in any dividends on the stock until the issue is resolved.
Bryn Mawr said it will cancel the shares if the new plan is not adopted prior to the Nasdaq's deadline for compliance.