The fireworks began early in the meeting -- before Thompson had begun his presentation of the company's 2007 results -- when shareholder Manuel Lopez walked to a podium in the grand ballroom of the Charlotte Marriott City Center, where the meeting was held, and called for the ouster of Thompson and the Wachovia board.
Lopez, who said he represented shareholders owning more than 4 million shares of Wachovia's stock, lambasted Thompson for the company's recent dividend cut and $8 billion capital raise after comments just months earlier suggested the dividend was safe. "Mr. Thompson failed to present a clear, accurate and timely picture of the company's financial condition, to the detriment of shareholders," Lopez said. "This is neither the board nor the CEO that we would like to see leading the company." Shareholders in the packed ballroom applauded. A bank spokeswoman estimated attendance of around 400.
Wachovia reported a net loss of $393 million in the first quarter and cut its dividend to 37.5 cents per share from 64 cents per share while also raising $8 billion in new common and preferred stock, which dilutes the value of existing shareholders' stock. "I stand here in front of you in the midst of difficult times," Thompson stated after Lopez had preempted his presentation. "I'm not here to sugarcoat things, I'm not here to make excuses and I'm not here to tell you we were a victim of circumstance." With the bank struggling through rising loan defaults in the "pick-a-payment" mortgage portfolio it acquired through its $24 billion purchase of Golden West Financial Corp., Thompson said, "Clearly, Golden West was an ill-timed acquisition." He added that the results are painful to him and his management team, which he said is focused on improving the company's performance and restoring shareholder value.
$27.5 (04/25/08)
