ISS urges stockholders to back Carver Bancorp director nominees

In the United States, on November 29, 2024, Carver Bancorp, Inc. announced that Institutional Shareholder Services (ISS), a prominent proxy advisory firm, has recommended that its stockholders support the company's director nominees. The recommendation comes ahead of the Annual Meeting of Stockholders scheduled for December 12, 2024. The recommendation includes Jillian E. Joseph and Kenneth J. Knuckles, both of whom possess qualifications that ISS deems beneficial for the company’s future direction. ISS's evaluation highlighted that the opposing group, Dream Chasers, did not present a compelling case for changes to the current board structure and warned that their strategy could jeopardize the bank's progress. The statement further emphasizes that operational recoveries for community banks are complex and can take several years, which was a strong consideration in their advice. Carver has faced challenges due to a formal agreement with the Office of the Comptroller of the Currency (OCC) and the wider impacts of the 2023 banking crisis, which have hindered quicker recovery efforts. Carver Bancorp has encouraged its stockholders to disregard any alternative proxy materials from Dream Chasers and to vote using the company's WHITE Proxy Card, underscoring the significance of retaining experienced leadership capable of steering the bank towards long-term profitability. This event highlights the critical decision-point for the bank's shareholders, as they will soon have to choose between maintaining the current board, which has outlined strategic plans for recovery, or accepting potentially disruptive changes proposed by an outside faction.