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Scott G. Thompson

Director at ATLANTIC AMERICAN
Board

About Scott G. Thompson

Scott G. Thompson, 80, has served as a Director of Atlantic American Corporation since February 1996. A certified public accountant, Thompson has spent virtually his entire career at American Southern Insurance Company (an AAME subsidiary), currently serving as its Chairman of the Board; he previously served as President & CEO (since 2004) and, before that, President & CFO (since 1984) . The board’s identified independent directors do not include Thompson, reflecting his close ties to the subsidiary and the company’s controlled status .

Past Roles

OrganizationRoleTenureCommittees/Impact
American Southern Insurance Company (AAME subsidiary)Chairman of the BoardCurrent (as of 2025)Provides insights into the subsidiary’s business model and niche products
American Southern Insurance CompanyPresident & CEOSince 2004 (prior role)Leadership of subsidiary operations
American Southern Insurance CompanyPresident & CFOSince 1984 (prior role)Finance leadership at subsidiary

External Roles

OrganizationRoleTenureNotes
Public company directorships (last 5 years)No other public company directorships disclosed in the director biography section, which would list such roles if any

Board Governance

  • Independence status: AAME is a Nasdaq “controlled company”; the board has determined that Mark E. Preisinger, Joseph M. Scheerer, and D. Keehln Wheeler are independent. Thompson is not listed among independent directors .
  • Committee assignments: Standing committees are Executive (H. Howell, R. Howell, Wheeler), Stock Option & Compensation (Preisinger—Chair, Scheerer, Wheeler), and Audit (Wheeler—Chair, Scheerer, Preisinger). Thompson is not a member of these committees .
  • Attendance: The board met four times in 2024, and each current director attended all meetings of the board and of committees on which they served .
  • Executive sessions: Independent directors hold executive sessions as needed, but at least annually at the first regular board meeting each year .
  • Board leadership: CEO also serves as Chairman; no Lead Independent Director designated .
  • Audit Committee quality: All members are independent and financially literate; Scheerer is designated as an “audit committee financial expert”; the Audit Committee has a written charter and met four times in 2024 .
  • Director election support: At the May 13, 2025 annual meeting, Thompson received 16,065,381 votes “For” and 629,852 “Withhold” (2,075,886 broker non-votes) .

Fixed Compensation

Metric20232024
Fees Earned or Paid in Cash ($)80,000 80,000
Stock Awards ($)-0- -0-
All Other Compensation ($) (Board service)-0- (excludes compensation received as an employee of a subsidiary) -0- (excludes compensation received as an employee of a subsidiary)
Total ($)80,000 80,000
Director Fee PolicyAmount
Per Board meeting fee ($)20,000
Per committee meeting fee ($)2,000
Equity grants to directors in 2023–2024None (no equity awards in 2023 or 2024)
Prior equity (reference)2022 restricted stock grant of $30,600 to each non-employee director; vested May 8, 2023

Performance Compensation

Performance-Linked Element20232024Notes
RSU/Stock awards (grant-date fair value)-0- -0- No equity awards to directors in 2023 or 2024
Option awardsNone disclosed None disclosed Directors are eligible under the 2022 Plan, but none granted in 2023–2024
Performance metrics tied to director payNone disclosed None disclosed Director compensation is per-meeting cash; no disclosed performance metrics

Other Directorships & Interlocks

OrganizationTypeRolePotential Interlock/Conflict
American Southern Insurance CompanyAAME subsidiaryChairman of the BoardSubsidiary leadership; board has not designated Thompson as independent; independent directors are Preisinger, Scheerer, Wheeler
Other public company boardsNone disclosed in biography

Expertise & Qualifications

  • Certified public accountant; decades of insurance operating and financial leadership at AAME’s subsidiary, American Southern .
  • Provides historical and niche-market perspective for the subsidiary’s operations .
  • Not designated as the Audit Committee’s financial expert (Scheerer holds that designation) .

Equity Ownership

ItemDetail
Common shares beneficially owned145,959 shares
Ownership as % of common<1% (asterisked as below 1%)
Shares pledged as collateralNot disclosed in proxy; no pledging policy disclosed
Hedging/derivatives policyNo formal hedging policy; company prohibits short sales and trading in puts, calls and other derivatives of company stock
Director stock ownership guidelinesNot disclosed

Say-on-Pay and Shareholder Feedback (Context)

ItemVotes
Advisory vote on executive compensation (2025)For: 16,287,474; Against: 385,451; Abstain: 22,308; Broker Non-Vote: 2,075,886
Auditor ratification (2025)For: 18,669,634; Against: 4,832; Abstain: 96,653
Frequency of say-on-payThree Years: 12,103,165; Two Years: 4,096,768; One Year: 471,198; Abstain: 24,102

Governance Assessment

  • Strengths

    • Long-tenured operator with CPA credential and deep insurance expertise; institutional knowledge of AAME’s key subsidiary .
    • Board and committee attendance was perfect in 2024 (all directors attended all board/committee meetings on which they served) .
    • Audit Committee fully independent and financially literate; charter in place; SEC-designated financial expert (Scheerer) .
    • 2025 director election support for Thompson (16.1M For vs. 0.63M Withhold) indicates shareholder backing at the latest meeting .
  • Risk indicators and red flags

    • Controlled company: majority ownership by the Robinson/Howell family exempts AAME from several Nasdaq independence requirements; only three directors are identified as independent (not including Thompson) .
    • Board leadership concentration: CEO also serves as Chairman; no Lead Independent Director designated .
    • Compensation governance: Stock Option & Compensation Committee lacks a written charter and did not engage an independent compensation consultant; it met once in 2024 .
    • Alignment: Directors received no equity awards in 2023–2024, shifting director pay mix to all-cash per-meeting fees, reducing equity-based alignment (Thompson’s 2024 director pay was $80k, all cash) .
    • Hedging policy: No formal hedging policy; while short sales and derivative trading are prohibited, the absence of a full hedging/pledging framework is a governance gap .
    • Related-party ecosystem: Significant related-party arrangements involve entities controlled by the family of the controlling shareholder (e.g., headquarters lease; Series D Preferred ownership; Gray insurance premiums), underscoring the importance of robust independent oversight (no such transactions are attributed to Thompson) .

Note: No director-specific related-party transactions, tax gross-ups, or equity pledging were disclosed for Thompson in the latest proxy .