Astoria Financial Corporation Investor Investigation Concerning Executive Compensation
An investigation on behalf of current investors of Astoria Financial Corporation (Public, NYSE: AF) over possible shareholder claims concerning breaches of fiduciary duty related to the historical and potential compensation that was awarded certain senior officers was announced.
According to the investigation by a law firm the investigation focuses on possible claims that certain Astoria Financial’s senior officers were unjustly enriched through their receipt of unwarranted, excessive or unearned compensation from 2005-2007. Astoria Financial Corporation is the unitary savings and loan association holding company of Astoria Federal Savings and Loan Association, and its consolidated subsidiaries (collectively referred to as Astoria Federal). Astoria Federal’s primary business is attracting retail deposits from the general public and investing those deposits, together with funds generated from operations, principal repayments on loans and securities and borrowings, primarily in one- to-four family mortgage loans, multi-family mortgage loans, commercial real estate loans and mortgage-backed securities. Certain senior officers at Astoria Financial Corporation, were awarded salaries, bonuses, stock options and other forms of long-term, ‘incentive’ or retirement compensation that was, so the investigation, excessive or unwarranted based on Astoria Financial’s performance as compared to what senior officers at comparable companies were making and/or results that were fraudulent, misleading or not long-lasting. The investigation by the law firm is also investigating claims that the prior compensation awarded at Astoria Financial Corporation is now clearly improper based upon its current operating condition. Finally the investigation focuses also on possible claims that would allow Astoria Financial Corporation (NYSE: AF) stockholders to influence or control future compensation decisions at Astoria Financial Corp. Astoria Financial Corporation is located in Lake Success, NY and had $21billion in total assets with an net income of $75million in 2008. Shares of Astoria Financial Corporation (NYSE: AF) traded recently at $8.88, down from over $28 in 2008.