Daytona Beach and Tampa, Fla.-based Brown & Brown Inc. has announced that its board of directors, at its regularly scheduled Oct. 19 meeting, voted a two-shares for one-share stock split of its common stock, to be effected as a 100 percent common stock dividend, with additional shares to be distributed Nov. 28 to shareholders of record on Nov. 2.
At the same time, before taking into account the split, the board also voted to increase the quarterly cash dividend rate to $0.10 per share, a 25 percent increase from the current rate of $0.08 per share, with the first payment at the new dividend rate to be made on Nov. 16 to shareholders of record on Nov. 2.
Concurrent with these actions, the board also unanimously approved the termination of the company’s shareholder rights plan, often referred to as a “poison pill.” While a shareholder rights plan may be appropriate to have under certain circumstances, the board concluded that it was not needed at this time, particularly in light of the current trend towards more shareholder-focused corporate governance practices. The decision was not made based on any anticipated business transaction.
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