(Adds company statement)
By Michael Flaherty
Nov 29 A shareholder of First NBC Bank Holding
Co has called for the chief executive officer's
removal, saying a change at the top would give more confidence
to the New Orleans lender's investors.
Activist hedge fund Clinton Group, which has not disclosed
the size of its holding in the small bank, first began agitating
for changes early this month. Clinton's second letter to the
board, disclosed on Tuesday, is the first time the hedge fund
has called for the removal of President and CEO Ashton Ryan.
"I would strongly suggest that the board properly execute
its fiduciary duty and address the material weaknesses in
management by replacing the current chief executive officer as
soon as practicable," Clinton Group Managing Director Scott
Arnold said in the letter.
A spokesman for First NBC Bank said in an emailed statement
that the company was open to input from shareholders and that it
had multiple discussions with the Clinton Group.
"First NBC is largely aligned with Clinton Group's
objectives and will continue to engage with Clinton Group as it
does with all of its shareholders," the statement said.
(Reporting by Michael Flaherty; Editing by Dan Grebler)