Home BancShares' chief takes pay cut
The leader of Home BancShares is taking a pay cut after shareholders rejected the Conway, Ark., company’s compensation plan.
The $15.5 billion-asset company disclosed in a regulatory filing Friday that Johnny Allison, its chairman and CEO, voluntarily reduced his base salary by 20%, to $400,000, for the next 12 months. The change is effective on May 8.
The move comes roughly a week after shareholders, in a nonbinding vote, rejected Home’s executive compensation plan. At the April 16 meeting, 62.4 million shares voted against the plan, or 18% more than the number that supported it.
“Although the say on pay vote … is advisory, the company takes this input from our shareholders very seriously,” the filing said. “The compensation committee … intends to undertake an evaluation of the company’s executive compensation program in light of the results of this vote.”
Home also disclosed that Alex Lieblong and Robert Adcock had resigned from the board’s nominating and corporate governance committee. Lieblong was the committee’s chairman.
The filing did not disclose the reasons for either director’s decision to step down, though both will remain on the board.
Home recently reported net income of $507,000 in the first quarter, down from $73 million a year earlier, that reflected a large loan-loss provision tied to adoption of the Current Expected Credit Losses standard and the coronavirus outbreak.