Another director of RBB Bancorp resigned because of a disagreement over the Los Angeles company’s corporate governance and policy matters.
The $4.1 billion-asset company disclosed in a press release that Paul Lin stepped down on May 8. In his letter, Lin took issue with the pace and timing of the board’s investigation into governance matters after Alan Thian resigned as chairman, president and CEO.
Lin wrote in his letter that he believes there have been possible violations of RBB’s code of ethics, while taking issue with the “adequacy and accuracy” of an internal probe that took place last year.
The board said in the filing that it takes Lin’s assertions “very seriously,” adding that, in the past year, it has updated certain policies, “bolstered” RBB’s senior leadership and engaged in a “deliberate and methodical” process to reconfigure the board.
Thian resigned in April 2022 after an investigation handled by an outside law firm identified violations of company policies and procedures, including those tied to personnel decisions and the “resulting adverse effects on officer and employee morale.” He was replaced temporarily, then permanently, by former CFO David Morris.
Six directors have since resigned, including Raymond Yu, who stepped down as vice chairman over a governance dispute, and Catherine Thian, who is Alan Thian’s sister.
RBB said in its filing that it opted to have an independent, non-executive chairman; created more stringent director independence standards; and increased board oversight over potential or actual conflicts of interest, among other things.