Excessive Pay at Medallion Financial Concerning for ZimCal
- Stock price is down 20% YTD and management continues to be rewarded at the expense of stockholders.
- High executive compensation does not align with core business performance.
- ZimCal sends letter to stockholders highlighting egregious compensation.
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Updated “5 Steps to Improvement” white paper to unlock value at
posted to www.restoretheshine.com/5-stepsMedallion Financial Corp .
Company insiders control approximately 30% of the stock so every singlevote in our favor matters and we are incredibly encouraged by the support we have received from independent stockholders. The Company has attempted to distract stockholders with speculation about ZimCal, its interests and its intentions. We are disappointed by the Company’s recent personal and untruthful attacks that forced us to issue a Cease and Desist letter. However, we are encouraged by their desperation, which indicates that they are threatened by strong stockholder support for our candidates.
EVERY DOLLAR THAT GOES TO EXCESSIVE PAY IS A DOLLAR TAKEN AWAY FROM STOCKHOLDERS
ZimCal sent a letter to stockholders expressing its concern about the current compensation structure at MFIN. We fear the current Board and management team are not aligned with stockholders but instead care more about management’s continued high compensation, regardless of MFIN’s stock performance or valuationi.
If ZimCal’s nominees are not elected, the Board would likely maintain the status quo, which has been very lucrative for the management team, as you will see from the letter. If ZimCal’s nominees are elected, and on behalf of stockholders, we would immediately address the excessive compensation structure of MFIN’s President and management team. Our letter addresses the following:
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We cannot understand how the Board can justify the
$25 million cumulatively paid to MFIN’s President,Andrew Murstein since 2018 for$77 MILLION in earnings, while the President of Synchrony Financial, a$117 BILLION consumer lender, was paid$55 million (or$30 MILLION more) for$17.3 BILLION in earnings to stockholders.ii - We believe that right-sizing management compensation would instantly boost earnings and valuation.
- We believe that MFIN’s President making 66x times as much money as “rank and file” employees does not make sense.
- We believe that MFIN’s executives should be compensated for core performance ONLY, which should exclude non-core, non-recurring items (mostly taxi medallion assets).
- We believe that management should be rewarded for proactively avoiding obvious risks and punished for ignoring them.
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We believe that the change-in-control provision that would amount to a
$14.2 million payout toMr. Murstein , or 7.5% of 1Q24 market capitalization, is excessive and is not in stockholders’ best interests.
We believe that change must happen now. If stockholders want compensation that is fair and does not enrich management at the expense of stockholders, we need their support to make any changes. Even if ZimCal’s 2 candidates are elected, we still only represent 25% of the Board, but any change to the current Board is a huge step in the right direction.
Visit www.restoretheshine.com/nominees to learn about our highly qualified nominees.
Vote for our two exceptional candidates by voting online or via mail using the WHITE proxy card. Even if you have already voted, you can still vote for our candidates and only your most recent vote will count. Full instructions can be found at www.restoretheshine.com/vote.
About
ZimCal Asset Management is an alternative investment firm focused primarily on niche, illiquid and complex credit investment opportunities with a specialization in bank investing.
See www.restoretheshine.com/#About for more details.
Solicitation Information
Stockholders are urged to read ZimCal’s definitive proxy statement and WHITE proxy card because they contain important information about the ZimCal nominees and related matters. Stockholders may obtain a free copy of the definitive proxy statement and WHITE proxy card and other documents filed by ZimCal on the web site of the
Participants in Solicitation
The identity of the participants in the solicitation and a description of their direct or indirect interests, by security holdings or otherwise is contained in ZimCal’s definitive proxy statement filed with the
i Source 10K/Q, DEF14A. E.g. when MFIN market cap increased 56% YoY at 2019, Mr. Murstein’s bonus was
ii Source 10K/Q, DEF14A. Synchrony Financial has an industrial bank platform, like MFIN but focuses on different consumer verticals and fee income businesses than MFIN.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240521925449/en/
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