Voting for Steve

“Anonymous” stated, “But anyway, since his name will not be on the proxy, the only people who might vote for him are those shareholders who attend the annual meeting – probably representing less than 1% of the shares.” Here’s the rub.

People might well vote for Steve without attending the meeting, and certainly can. A shareholder does not have to fill out the proxy and return it to the bank. We can give our proxy to someone who is attending the meeting with instructions as to how we want our shares voted. That person may then cast our votes for Steve.

Secondly, 1% is approximately 32-33,000 shares. I am aware of several shareholders who represent nearly 1%, and in some cases more that 1%, by themselves. These shares may held in their names and the names of family members, or legal entities over which they have voting control; like a trust or partnership.  Many of these people will attend this meeting, so exceeding 1% by some margin, but I have no idea how many shares will be represented in person.

By the way, if you have shares in a partnership, trust, fund or investment group you may want to find out if someone else already has the power to vote your shares. The managers may just send the proxy, representing your shares, back to the bank to vote. They should be contacted if that is not your wish.

How many shares would be needed to carry the vote?

It appears that most of the bank stock is held by a lot of shareholders and there are only a few entities holding significant amounts. The board members hold around 200,000 shares of the nearly 3.4 million shares outstanding. I’m told Dimensional Fund Advisors, Inc. holds around 125,000 shares. It doesn’t appear that more than half a million shares are held by the largest shareholders. If that is the case, it leaves a lot of opportunity for the rest of us. How many votes would we need?

2 comments on “Voting for Steve

  1. If you bought your shares thru a brokerage your shares are probably registered in street name. When you receive your proxy in the mail there is a box that you check indicating that you wish to vote your shares in person. If you vote on the internet and use proxyvote just check the box stating that you wish to vote your own shares and submit. If you vote by mail check the box and mail in. You will receive a power of attorney from the holder of the shares that you present at the annual meeting and vote there. Very easy to do.

  2. How to get Steve elected.

    Below is a copy and paste from the 8- K of last years annual meeting. When you analyze it, you will see that the broker non-vote and the withheld vote together, are greater than the total votes Craig received. Craig received only about 1/3 the total shares outstanding. If we can reduce the total votes for the banks candidate by withholding our votes for that person then we can get Steve elected. This is how it could play out:

    Banks candidate receives 500,000 from proxy votes and bank officers.
    15 person’s at the annual meeting vote 20,000 shares for Steve.
    20 person’s at the annual meeting vote 5,000 shares for Steve.
    50 person’s at the annual meeting vote 1,000 shares for Steve.
    100 person’s at the annual meeting vote 500 shares for Steve.
    And the one person that only holds 1 share and didn’t think they could make a difference, votes, and guess what Steve wins.

    Item 5.07 Submission of Matters to a Vote of Security Holders.
    On May 10, 2011, the Company held its annual meeting of stockholders. The results of the vote at the meeting at which a quorum was present were as follows:
    1. To elect one director to serve a three-year term:

    For Withheld Broker Non-Vote
    Craig O. Wesner 1,150,760 212,143 1,031,957
    2. To approve the Company’s executive compensation:

    For Against Abstain Broker Non-Vote
    1,047,823 287,572 27,508 1,031,957
    3. To ratify the selection of BKD, LLP as independent auditors for 2011:

    For Against Abstain Broker Non-Vote
    2,240,926 115,266 38,668 0
    4. Stockholder Proposal to eliminate the classified board of directors:

    For Against Abstain Broker Non-Vote
    343,555 931,662 87,686 1,031,957

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