Cascade Financial Corp. board shakeup brewing
Published 10:53 pm Tuesday, March 2, 2010
EVERETT — There’s growing unrest among the shareholders at Cascade Financial Corp.
A regulatory filing from a group of shareholders calls for the removal of three directors from the Cascade Bank’s 12-member board, saying the bank has underperformed and needs new leadership.
The investors own 11.5 percent of the corporation. The letter was released Tuesday but sent in late February, and calls for a proxy fight to elect new officials at the bank’s next shareholder meeting.
The dissenters include current board members Craig Skotdal and Dwayne Lane. The complaint sent in late February alleged that the board does not function as a “marketplace of ideas” that welcomes differing perspectives.
“Instead, they believe board members routinely defer to management, squelch dissent, and promote conformity,” the letter reads. “The effect is entrenchment and complacency, without proper regard for the board’s fiduciary duty of overseeing management and building value through attention to the core business of the bank.”
Cascade is operating under regulatory oversight after taking big hits from the deep recession. The bank’s losses for 2009 totalled $23.5 million.
“While other banks have found effective strategies to rebuild and return value to shareholders, Cascade reported a net loss of $23.5 million and a loss attributable to common stockholders of $25.8 million for 2009,” the letter reads.
The shareholders want Thomas Rainville, Christian Sievers and Arnold Hofmann be appointed to the board of directors.
A proxy fight is called for if the board doesn’t recommended those candidates. The letter requested a reply by Feb, 26.
It’s not clear Cascade has responded. Cascade CEO Carol Nelson did not immediately return phone calls late Tuesday afternoon.
Read Amy Rolph’s small-business blog at cmg-northwest2.go-vip.net/heraldnet/TheStorefront. Contact her at 425-339-3029 or arolph@heraldnet.com.
