A major showdown is set to take place in the insurance industry and the financial capital markets in The Bahamas. The Cole family, formerly of Peter Cole and Associates, a major shareholder in Bahamas First Holdings Limited, is protesting the benefits being received by the management over those given to shareholders.
James Cole, an attorney representing the family's interests, said in a document to shareholders of the insurance company that directors of the company are overpaid.
The family does not agree with the corporate governance of Bahamas First and is seeking improvement, according to Mr. Cole.
When contacted by the Bahama Journal, he said he thought it was inappropriate to comment publicly on the matter.
But in the document registering the dissenters' proposals, Mr. Cole, who is also a director of the company, called on the shareholders to ask for the resignation of President Quentin Chisnall at tomorrow's Annual General Meeting at the British Colonial Hilton Hotel.
Mr. Cole charges that Mr. Chisnall put "his own interests ahead of the interests of the shareholders.
A statement by the dissenters said, "Mr. Chisnall has, on more than one occasion, effectively obstructed Mr. James Cole from obtaining pertinent information regarding the affairs and accounts of Bahamas First and its subsidiaries."
"Assuming Mr. Chisnall's employment by Bahamas First is terminated, the 9.5 percent of profit sharing allocated to Mr. Chisnall in 2001 will be available for reallocation amongst the remaining executives and non-executives, which will help off-set any reduction in the amount of profit sharing available annually to the employees," the statement said.
Mr. Chisnall was not today available to comment on the Cole family statements.
The family also believes that Chairman Ian Fair is overpaid. Presently, Mr. Fair is being paid $52,000 with the right to participate in bonuses, but his salary for that job should be decreased to $40,000, according to the document being circulated among shareholders.
The dissenters have indicated that monies being paid to the 13 directors of the company threaten profits for shareholders.
They are proposing that the board be reduced to 11.
Each of the directors is paid $12,000 per year, regardless of whether he is a paid employee of Bahamas First or one of its subsidiaries. Under the proposal, the directors who work for the company would be paid only $4,000.
"In The Bahamas it is fairly common for one or more executives to sit on the board of the companies for which they work. However, it is uncommon for those executives to be paid the same level of remuneration paid to the non-executive directors…Dissenters are of the view that compensation ought to be paid to directors who are also paid employees of Bahamas First, but at a reduced level," the statement read.
The family also wants the company's profit sharing plan to be revised to prevent employees from being paid bonuses which exceed the operating profits of Bahamas First.
A former shareholder of Bahamas First told the Bahama Journal that the circulation of this "very sophisticated" document shows the ever increasing maturity of society, in the business world as is being evidenced in the political arena.
