The Case of One Highly Incentivized Exiting Executive
Wondering if BXS Chairman and CEO Aubrey Patterson will retire on schedule in May 2013 as announced and bequeath bank leadership to a successor? Personally, having read the April 2012 Proxy and considered his incentives to sell, I don't think he will. At least not if he had any of the same business school professors at Michigan State that I had.
Disclosure: As of this posting, I own shares of BXS and may subsequently either dispose of them or purchase more.
BancorpSouth enjoys an unusually low cost of deposits and an unusually high percentage of steady, fee-based revenues, making it a highly coveted franchise. If any of the following banks were to purchase it at a 20% premium to today's trading price of $15, the buyer's earnings would immediately go up.
BB&T Corp, Winston-Salem, NC (BBT)
Capital One Financial, McLean, VA (COF)
IBERIA Bank, Lafayette, LA (IBKC)
(as of 06/30/2012)
Aubrey Patterson, Jr, Chairman and CEO
James Kelley, President and COO
William Prater, Treasurer and CFO
What would you do if you were Aubrey?
According to the Proxy Statement:
If Aubrey simply retires...
The 2000% Difference Between Aubrey's Choices