By William Hamilton
PBN Staff Writer
PROVIDENCE – A third independent proxy advisory firm has endorsed all of the board of directors nominated by Bancorp Rhode Island Inc. (Nasdaq: BARI), parent of Bank Rhode Island, in its proxy battle with a dissident shareholder.
RiskMetrics Group (formerly Institutional Shareholder Services) recommended that shareholders vote for the company’s five nominees at the annual shareholder meeting tomorrow.
Two weeks ago, the advisory firm Glass Lewis & Co. made the same recommendation. And last week, PROXY Governance Inc. also backed the BancorpRI nominees. (READ MORE)
The analyses and recommendations of the three advisory firms are relied upon by hundreds of major institutional investment firms, mutual funds and fiduciaries throughout the United States, BancorpRI noted today.
PL Capital – an Illinois investment firm and BancorpRI’s largest institutional shareholder – has insisted that Providence-based Bank Rhode Island has not been performing as well as it should. Accusing the current directors of not looking to increase shareholder value, PL Capital is are seeking three seats on the board of directors. (READ MORE)
Although a similar campaign last year was rejected by shareholders (READ MORE), firm said it will push for performance improvements or a sale of the 16-branch bank.
But in its May 15 report, RiskMetrics said, “The company’s stronger year-over-year performance suggests that its investments of 2003-2006 are beginning to bear fruit. BARI’s improvement is particularly notable given the challenging operating environment for banks during the last year. …
“In addition, we have found no signs of board/management entrenchment or evidence that change is needed in the boardroom. The current board is majority-independent and has a track record of delivering solid returns to its shareholders,” RiskMetrics said.
BancorpRI Chairman Malcolm G. Chace replied: “We are pleased that, for the second year in a row, all three major proxy advisory firms have recognized the significant contribution of our board members and recommended in favor of the board’s director nominees. We look forward to continuing to execute on our strategic plan and creating long-term value for all our shareholders.”
Bancorp Rhode Island Inc. (Nasdaq: BARI), based in Providence, is the parent of Bank Rhode Island, a state-chartered, FDIC-insured institution with 16 branches in Providence, Kent and Washington counties. Additional information about BankRI and its parent company is available at bankri.com.
