Wednesday, 16 April 2008

Gotcha! CTW's first sub-prime result

The Change To Win Investment Group has successfully helped to oust a director of Washington Mutual as part of its campaign to seek corporate accountability for the sub-prime debacle, and is seeking the departure of two others. FT report here, CTW's own statememt below.

CtW: Shareholders Rejected Two Additional WaMu Directors

Investment Group calls for resignations of James Stever and Charles Lillis

Washington, DC - Pointing to unofficial election returns showing that shareholders rejected two additional WaMu Directors, James Stever and Charles Lillis, the CtW Investment Group called on the WaMu Board to immediately release full election results and demand the resignation of any directors who failed to win majority shareholder votes.

“Washington Mutual shareholders sent an unequivocal message today that they are ready for more independent and accountable Directors,” said CtW Investment Group Executive Director William Patterson. “While we commend Washington Mutual’s Board for promptly accepting Mary E. Pugh’s resignation, we believe that Charles M. Lillis and James E. Stever also failed to win re-election. The Board should immediately disclose detailed election returns, and should demand the resignation of any Directors who failed to win majority support, excluding broker votes.”

The letter, which is attached, cites preliminary election returns showing that shareholders withheld 51.2% from Mr. Lillis, 61.9% from Ms. Pugh, and 50.9% from Mr. Stever. CtW had urged shareholders to withhold from Pugh in response to risk management failures and from Stever in response to poor executive compensation practices. AFSCME also urged withholds from Stever and Lillis.

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