A top shareholder of Dallas-based First Foundation isn’t happy with the bank’s stock performance and executive turnover and thinks its board needs some Texas blood.
Abbott Cooper, founder of New York-based Driver Management Co., blames the unwelcomed developments on the bank’s liquidity position and its board
“This isn’t fatal to the business but the board should have been paying more attention,” he said about the bank’s liquidity.
The solution is to change up the board, which Cooper said isn’t fulfilling its oversight duty and needs Texas-based members with connections to high-net-worth individuals. The bank moved its headquarters to Dallas from California in 2021
Cooper’s letter to the $12.3 billion-asset bank nominated two female, “homegrown” Texans with financial services experience for the bank’s board. He declined to name his nominees, but one is formerly a Goldman Sachs vice president and finance director for Sen. Ted Cruz’s presidential campaign, according to Cooper’s nomination notice obtained by The Dallas Morning News.
He sent his notice of nomination on Dec. 30, the first day of the 30-day period when shareholders can nominate candidates for the board. Outside legal counsel for First Foundation initially sent a response that “several key players of First Foundation’s management team are focused on typical year-end tasks” in response to his request for a questionnaire, something required by the bank’s bylaws to nominate a director.
First Foundation CEO Scott Kavanaugh declined through company spokeswoman Shannon Wherry to speak with The Dallas Morning News.
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