**David Sokol’s Fund Acquires Stake in Atlantic Union Bankshares**
**Meta Description:** David Sokol’s Teton Capital has acquired a stake in Atlantic Union Bankshares, urging cost-cutting and board restructuring.
**URL Slug:** david-sokol-atlantic-union-bankshares-stake
**David Sokol’s Fund Acquires Stake in Atlantic Union Bankshares**
Financier David Sokol’s investment firm, Teton Capital, has acquired a stake in Atlantic Union Bankshares Corp., prompting the regional bank to consider significant changes. Sources familiar with the situation, who requested anonymity due to the private nature of the details, revealed that Teton Capital holds less than a 5% stake in Atlantic Union.
Sokol, a former executive at Berkshire Hathaway and once viewed as a potential successor to Warren Buffett, has expressed concerns regarding Atlantic Union’s performance, particularly following its $1.6 billion acquisition of Sandy Spring Bancorp last year. He perceives this move as an expensive venture into unfamiliar territory that has not yielded satisfactory results.
Among Sokol’s recommendations is the reduction of Atlantic Union’s board, which currently consists of 14 directors. He advocates for a thorough evaluation of overhead expenses to facilitate cost-cutting measures and suggests aligning executive compensation with the bank’s stock performance.
Despite the challenges, Atlantic Union’s shares rose by 2% in New York trading on Friday, bringing the Richmond, Virginia-based bank’s market value to approximately $4.4 billion. However, the bank’s stock has experienced a decline of around 19% this year. Following the Sandy Spring acquisition, Atlantic Union expanded its board by adding three new members, a move that received support from over 95% of its shareholders, as noted in a regulatory filing. Additionally, the bank welcomed two more board members through its all-stock acquisition of American National Bankshares last year.
Sokol previously managed Berkshire Hathaway’s energy utility and aviation subsidiary, NetJets, before resigning in 2011.
**FAQ**
**What changes is David Sokol advocating for at Atlantic Union Bankshares?**
David Sokol is urging Atlantic Union Bankshares to cut costs, reduce its board size, and align executive compensation with stock performance to improve overall efficiency and shareholder value.
