Murstein said he did nothing wrong
He was able to solve one of his problems on Monday by persuading Korr, a fund that controls 5.5% of Medallion shares, to lay down its arms. Medallion agreed to reimburse Korr up to $500,000 for the cost of his dissident campaign.
In exchange for Korr’s removal from its slate of board nominees, Medallion agreed to appoint Brent Hatch as lead director effective immediately. Hatch is the former associate White House attorney for President George HW Bush and sits on the board of directors of a subsidiary of Medallion. A recruiting firm has been retained to find a replacement for a Murstein loyalist who has served on the board since 2003. The size of the board will be increased from eight to nine members.
“These are further examples of our longstanding commitment to strong corporate governance,” Andrew Murstein said on a conference call Tuesday, adding that the company had added six independent directors over the past five years.
Last year, the more independent-minded board limited the benefits enjoyed by the Mursteins, who have run Medallion since it was launched in the 1930s by Andrew’s grandfather. The company has decided that it will no longer pay dues for its personal drivers or its country club and social club, with the exception of a country club membership specified in Alvin Murstein’s employment contract which cost $46,562 in 2021, according to a regulatory filing.
In a statement, Alvin Murstein said 2021 was the most profitable year in company history and under the leadership of his son, the company has been transformed to focus on home loans. consumer and commercial instead of taxi medallions.
“We look forward to working with the new directors to build on our successes,” he said.