Stewart Information Services, Inc. (NYSE: STC)
The firm is investigating a derivative case against Stewart Information Services, Inc. (NYSE: STC), a Delaware corporation headquartered in Houston, TX. The Company provides title insurance and related information services to the real estate and mortgage industries.
Since the Company’s founding by William H. Stewart in 1893, the lineal descendants of Mr. Stewart have managed the company, including the current co-CEOs of the Morris family.
The Board has consistently shirked its fiduciary duties for the benefit of the Morris family, including overcompensating the current co-CEOs despite the Company’s terrible financial performance. For example, Stewart’s stock has tumbled over 75% in the last 5 years, yet the compensation awarded to each CEO has nearly doubled between 2008 and 2010. The co-CEO structure in and of itself is unusual and unnecessary, and likely serves to substantially and unnecessarily increase compensation costs to Stewart’s shareholders.
At Stewart’s annual meeting on April 29, 2011, 52% of the shareholder votes cast were against the Company’s compensation plan. Furthermore, the shareholders did not vote to re-elect members of the compensation committee in either 2010 or 2011, yet the Board has not acted to remove those directors.
We seek to commence a shareholder derivative action on behalf of Stewart Information Services against certain of its current officers and directors for breach of fiduciary duty, waste of corporate assets, and unjust enrichment relating to the Board's excessive compensation practices.
If you are a current shareholder who purchased prior to March 3, 2009 and would like to discuss your options of exercising your rights as a shareholder, which includes ensuring that the board of directors will act in the best interest of the shareholders, please contact us.
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