FOR IMMEDIATE RELEASE
April 14, 2008
CONTACT:
In Washington D.C. this evening: Per Olstad, (202) 340-3845
At Seattle tomorrow: Richard Clayton, (202) 255-6433
CtW Investment Group: WaMu Board Should Demand Resignation of Directors Who Fail to Win a Majority
Washington, D.C. and Seattle, WA – Citing preliminary vote tallies, the CtW Investment Group sent a letter to the WaMu Board demanding that they request the resignation of any Directors who fail to win a majority vote, excluding broker votes, at tomorrow’s annual meeting. The Group also announced that its Research Director, Richard Clayton, would be in Seattle to attend the meeting.
“Reports that WaMu spurned a takeover offer from JPMorgan in favor of a TPG deal that permits current management to stay in place underscore the need for a strong, independent and accountable Board that will put shareholder interests first,” said CtW Investment Group Executive Director William Patterson. “Washington Mutual Directors must not hide behind broker votes to improperly seat Directors who do not win the support of the shareholders.”
The CtW Investment Group has urged shareholders to withhold from Directors Mary Pugh and James Stever based on their respective failures to independently oversee risk and maintain the link between pay and performance.
Under current NYSE rules, brokers may vote on behalf of certain shareholders in director elections. Last year such votes accounted for over 19% of the total at Washington Mutual. Given their potential to distort election results, the NYSE has attempted to change its rules to eliminate broker votes in director elections, but the SEC has so far failed to act on the proposal.
A copy of the letter is attached. For further information, see www.ctwinvestmentgroup.com. For comment on Monday, April 14 call Per Olstad at (202) 340-3845. For comment at tomorrow’s meeting, call Richard Clayton at (202) 255-6433.
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