The preliminary results of a vote by Hanover Bancorp. shareholders on Friday show overwhelmingly support for Michael Puorro, president, chairman and CEO of the bank, despite accusations of mismanagement and nepotism from an activist stockholder, according to Hanover officials.
Puorro, Dr. Michael Katz and John Sorrenti were “overwhelmingly supported to three-year terms on the bank’s board of directors, according to a press released by Hanover on Tuesday.
On Feb. 10, activist shareholder Brian Pun sent an open letter to shareholders alleging that Michael Puorro took an excessive salary and bonus this past year.
Hanover does not release its CEO’s compensation, but Pun said he believes Puorro receives a cash salary and bonus totaling over $1 million.
Pun, a Queens-based real estate investor, also claimed in the letter that Puorro hired his son as an accountant, despite the fact that he is not qualified for the job.
He further alleged that Puorro hired his daughter, who never once showed up to work. Pun also alleged Puorro forged timesheets for his daughter to cover up her absence and provided her with a salary and benefits.
Puorro responded to the accusations leveled against him in an open letter from the board of directors to shareholders on Feb. 12.
Puorro and the board asserted that the letter Pun sent to shareholders was “filled with false allegations, irrelevant assertions and blatant misstatements.”
Puorro stated in the letter, “Mr. Pun knows that the performance of the bank under my leadership has been stellar so instead he seeks to distract you with immaterial and false claims about my prior experience, my family and my compensation.”
The Hanover CEO went on to claim that Pun and his son owe Hanover millions of dollars in outstanding loans. He further alleged that Pun is colluding with First Central Savings Bank to stop Hanover from launching an initial public offering.
According to the letter, First Central Savings Bank extended a loan to Pun that was first denied to him by Hanover.
Efforts to reach First Central Savings Bank officials were unavailing.
The tension between Hanover and First Central Savings extends beyond Puorro’s allegations against Pun.
First Central Savings currently employs three former Hanover executives who left the bank in October 2019. Hanover filed a lawsuit with the Nassau County Supreme Court against all three former employees accusing them of stealing proprietary bank information.
The letter from the board preceded the annual meeting of shareholders held on Friday. In the letter, the board of directors urged shareholders to vote for the re-election of three directors, and the removal of one.
The shareholders overwhelmingly supported both of Hanover’s proposals on Friday which included a call to remove John Sapanski from the board.
John Sapanski is the father of Kenneth Sapanski, one of the three former Hanover executives who now works for First Central Savings. Sapanski had been Hanover’s chief credit officer.
Hanover Bank has expanded quickly in recent years.
The bank now operates branch locations in Garden City Park, Flushing, Forest Hills, and Sunset Park, Brooklyn. Hanover also acquired Chinatown Federal Savings Bank in Chinatown last summer.
This is not the first time Puorro has faced criticism.
In June 2018, Paul Hagan, who was at the time the chief financial officer at Hanover Bank, publicly pushed for Hanover to separate the roles of chairman and CEO.
Hagan is now the president and chief operating officer at First Central Savings Bank.
