Cardinal Bankshares Announces Detente

Article excerpt

Byline: Rachel Witkowski

The dust has seemingly settled at Cardinal Bankshares.

Cardinal's board has settled on a new chief executive and elected a new chairman, just weeks after a divisive proxy battle raised questions about the future leadership of the Floyd, Va., company.

Michael Larrowe was named president and CEO of the company and the Bank of Floyd, according to a Thursday filing with the Securities and Exchange Commission. Larrowe had been handling Cardinal's day-to-day operations since late May, when R. Leon Moore went on leave shortly after shareholders voted him off the board.

The filing said that Moore had been terminated on May 29, exactly one week after the annual meeting.

Two other directors, including Larrowe, were voted out at the annual meeting, replaced by three nominees of activist investor Schaller Equity Partners. Following the vote, two more directors left, making good on a threat to leave if the Schaller nominees were elected. …