Banc of California's shareholders delivered a pair of rebukes for the Irvine company's management.
Investors, in a nonbinding vote, soundly rejected Banc of California's executive compensation during an annual meeting Friday, according to a regulatory filing. Shares voting against the plan were more than double those that supported it.
The $9.6 billion-asset company's shareholders also approved of a proposal from PL Capital, one of the company's biggest investors, to replace plurality voting with majority voting for directors. Nearly 27 million shares voting for the nonbinding measure; only 645,000 shares voted against it.
PL Capital, which owns almost 6% of the company, has clashed with management several times, at one point requesting that the lead director release details about Chairman and Chief Executive Steven Sugarman's involvement with an investment fund that violated securities laws.
Banc of California didn't immediately provide a comment. John Palmer, a principal at PL Capital, was unavailable for comment.
Banc of California has grown quickly recently, adding $3.5 million of assets since early last year. However, some industry observers have raised questions about the company's transparency and operations.
"In our opinion, [the company] does not go far enough in providing information relevant to analyze the company's financials," Tim Coffey, an analyst at FIG Partners, wrote in a recent note to clients. "Our primary concern with the lack of transparency is investors are unable to adequately value the riskiness of the business."