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| 30 Yr Fix |
6.05% |
-0.01% |
| 15 Yr Fix |
5.60% |
0.01% |
| 1 Yr ARM |
5.29% |
0.00% |
| 5/1 ARM |
5.67% |
-0.06% |
| 30 Yr Tres |
4.56% |
-0.06% |
| Fed Prime |
5.00% |
-0.25% |
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WaMu Executives Will See Bonuses Protected from Financial Fallout
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At least there will be some people who will not suffer unduly from the subprime
mortgage mess - even if they played a role in creating it.
The Wall Street Journal is reporting that Washington Mutual
(WaMu) has approved compensation targets for its top executives
that will exclude some of the costs tied to mortgage losses and foreclosures
when cash bonuses are calculated later this year.
The decision will protect the compensation of the company's chairman
Kerry Killinger and more than 100 other executives from potential cuts in spite
of the fact that the major mortgage servicer reported a 1.87 billion loss in
the fourth-quarter. According to the bonus plan, loan-loss provisions on mortgages
and foreclosure costs will both be omitted from the new bonus formulas.
In a statement late yesterday, WaMu said, "The success with which credit
costs are managed will unequivocally continue to be a major part of the Board's
final deliberations." The company added that it will include further information
on the company's compensation philosophy in its proxy statement later this month.
According to The Journal, the new formula angered some WaMu
investors, who have seen the value of their holdings shrivel as the thrift's
mortgage troubles worsened. In the past year, WaMu's share price has tumbled
about 70% to a recent price of $13.39. The article quoted one investment banker
as saying "Bonuses should be given to the executives who enhance shareholder
value, not destroy it."
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Comments (9)
| This is just a joke - I too was one of the 3000 plus laid off at Wamu on 12/10 - having just come on board and funding 1.5 M in November. I don't think any other company has soured me so much. The same folks voting to keep bonuses for the execs are just hoping they get promoted into the top slots so they too can feed at the trough later. And none of them had a thing to do with every making a dime for the company - |
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| Above Posted By:
susan
| Thu, 6 Mar 2008 13:04:25 EST |
| I thought I would be one of few that show support for these executives. They help empliment the negative amortization loan...They call it a 30 year fixed though. Simply they charge 5.5% interest on a 30 year fixed (tell customer) however the true rate is 6.75%. You pay on 5.5% and 1.25% interest is added to your balance each month. How is this not a great idea. The customer gets a nice fixed rate but their balance goes up 1.25% each month as does their so called fixed payment. Now how in the world wouldn't that be beneficial to a company customer. Pathetic, that a mortgage program like this would be rewarded. |
|
| Above Posted By:
Anonymous
| Thu, 6 Mar 2008 12:32:36 EST |
| I was one of the 3150 employees they laid off on 12/10 as part of their "cost saving measures". Good to see that firing all those people didn't hurt their bonuses. |
|
| Above Posted By:
Karen
| Thu, 6 Mar 2008 09:37:52 EST |
| Why aren't these guys being prosecuted for criminal acts? Is it any wonder that there is no more belief in America's systems when the obviously corrupt elements of our society are rewarded rather than prosecuted? The Investors of WAMU should bond together and hire large law firms to emasculate these Robber Barons. I recommend long vacations for all of those executives who would be prosecuted, but the vacations would be spent in Prison, not in Hawaii.
Go get them WAMU Investors! Make them pay! They robbed you blind!
|
|
| Above Posted By:
Andy
| Thu, 6 Mar 2008 07:09:33 EST |
| The stock tumbles 70% in one year and they can't wait to hand out bonuses to Kerry K. and 100 other top executives! Also lets not forget about the 1000's of employees that have already lost their jobs because of senior managements decisions. |
|
| Above Posted By:
SJ
| Wed, 5 Mar 2008 17:20:44 EST |
| Here's more fuel to add to you fire. Employees who have to work twice as hard now because of the market had their compensation cut. So while the execs are in their Ivory tower making their profit the rest of us are struggling to get paid. It would be nice if they had to experience the repercussions of their mistakes as their employees, borrowers and investors have to! |
|
| Above Posted By:
Annonymous
| Wed, 5 Mar 2008 15:21:44 EST |
| Where are the share holders in all of this? The Mutual Funds, Pension Plans, Corporate Portfolios, Insurance Companies that hold these positions????? If these people allow the Executives at the top to get paid these ENORMOUS figures during a time of huge losses, then fine! Let the Executives get paid on "under performance." The thing about Wall Street is, no matter how executive plans are based, whether its compensation on share price or based on earning per share, etc. there are ways for executives to "work" the system in their favor. Does that mean that capitalism isn't really capitalism any longer? Maybe someone should write a book about this. Can Wall Street truly support a free market? "Capital markets and the wagging of the dog syndrome." |
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| Above Posted By:
Anonymous
| Wed, 5 Mar 2008 14:23:42 EST |
| Only in America can you create a crisis and be rewarded for it. WaMu investors and forclosure homeowners should rally at their doorsteps and cry foul. And they should continue to revolt until these greedmongers step up to the plate and put their money on the table for clean up. Fire them all!! |
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| Above Posted By:
LouLou
| Wed, 5 Mar 2008 14:05:13 EST |
| This should really raise some flags. If you don't require someone to be accountable then why should they? If there is no penalty for poor performance, bad performance, or just straight out corruption ( which they did ), then why should we expect them or anyone else to expect to have to be accountable. Why would anyone take a stand during a meeting and say " hey, I don't think that's a good idea because...." ? I mean heck, they get paid whether they make good decisions or not. It makes perfect sense, right? I forgot, why is it that they get paid again? |
|
| Above Posted By:
Jeff
| Wed, 5 Mar 2008 13:50:17 EST |
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