Judge Rejects FirstMerit Shareholders' Say-On-Pay Suit

Law360, New York (May 14, 2013, 7:24 PM EDT) -- A federal judge on Friday dismissed derivative actions brought by shareholders in FirstMerit Corp. alleging that the bank's board improperly approved executive pay packages that investors rejected in a nonbinding say-on-pay vote.

Judge Patricia A. Gaughan of federal district court in Akron, Ohio, ruled that FirstMerit's board was not required to reject the executive pay package for 2011, including an approximately 16 percent raise for CEO Paul Greig, despite a 20 percent fall in the bank's stock price for the year.

Although the 2010 Dodd-Frank Act...
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