NAPERVILLE, Ill., April 15 /PRNewswire/ -- PL Capital Group announced today that two leading independent proxy advisory firms, RiskMetrics Group and PROXY Governance Inc., have published their analyses for the CFS Bancorp, Inc. (Nasdaq: CITZ) annual meeting. Both RiskMetrics and PROXY Governance have recommended that shareholders elect PL Capital Group's nominee John Palmer to replace CFS Bancorp's nominee Frank Lester.
In its analysis RiskMetrics noted that "the entire board has been in place since 2004, with most having served over much longer time periods. Accordingly, we feel the board must share responsibility for the sustained underperformance during the last five years as detailed and believe change is warranted." RiskMetrics went on to show support for John Palmer and his experience in the banking industry by stating that it feels "the dissident nominee has the relevant experience, knowledge and skills necessary to bring a fresh perspective to board discussions and effect positive change."
In its analysis PROXY Governance stated, "we remain concerned by the company's long-term underperformance of its peer group on key measures of operating and management effectiveness." They further added, "Given the other significant issues the dissidents have raised about the board's attention to important governance details – the structure of certain bonus programs even as shareholder value plummeted, and the board's acceptance of unnecessary related party transactions with the CEO's direct family members – we believe shareholders will be best served by electing the dissident nominee, J. Palmer."
PL Capital principal Richard Lashley commented, "As everyone who follows CFS Bancorp knows, we have grown increasingly frustrated with the company's overall financial performance, related party transactions, and poor corporate governance practices. The lack of urgency in the boardroom to correct these errors needs to be addressed immediately. It is great to see two independent third parties who understand and agree with our concerns. As RiskMetrics noted, a fresh perspective is exactly what the board needs."The PL Capital Group is CFS Bancorp's largest outside shareholder owning 9.9% of the common stock.