A shareholder has sued John Hancock Financial Services, Boston, in federal district court, charging that the company illegally used steep pay raises to reward CEO David F. DAlessandro and four other top managers for taking the company public in 2000.
The lawsuit was brought on behalf of Aaron E. Landy Jr., a shareholder in Southlake, Texas, by Boston attorney Jason B. Adkins, a frequent critic of Hancock.
Court papers filed by Adkins cite recent criticism of Hancock by life insurance industry financial analysts, charging that Hancock directors this year awarded top executives what they said was the highest pay in the industry despite a 15.4% drop in net income and a 32.4% decline in share price.
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The companys compensation committee chairman stated recently that the raise was at least partly to reward the executives for Hancocks strong stock performance in the first year of its IPO, the lawsuit charges.