Here's the problem, you see?
This...this is precisely what should sicken anyone with a brain, which tells you all you need to know about politicians, who do not differentiate between good CEOs and utter ciphers like this guy.
Saturday, September 27, 2008 - 7:05 PM PDT
WaMu execs could get cash severance totaling $38 million
Portland Business Journal - by Greg Lamm
Alan Fishman, the CEO of Washington Mutual Inc. for only a few weeks before the Seattle-based thrift failed, would be entitled to $19.1 million in severance and bonus pay.
Two other top WaMu executives have clauses in their employment agreements that would also pay them a total of $19 million in cash severance if they are terminated by JPMorgan Chase & Co.
WaMu, which has 67 branches in Oregon, was seized by federal regulators and sold to JPMorgan Chase & Co. Sept. 25.
According to a WaMu filing with the Securities and Exchange Commission, Fishman, who replaced Kerry Killinger as WaMu CEO on Sept. 8, signed an agreement that would pay him a cash severance of $11.6 million if he is terminated this year or resigns. He also would be allowed to keep his $7.5 million signing bonus.
The WaMu executive with the biggest termination package is Stephen Rotella, president and chief operating officer, who is entitled under his current employment agreement to a cash severance of $12.7 million if he is terminated or quits with “good reason.”
Meanwhile, CFO Thomas Casey would receive a cash severance of $6.3 million if he is fired or quits with good reason.
Both Rotella and Casey also could receive millions more in non-cash severance compensation under their employment agreements.
A JPMorgan spokesman could not be reached for comment. But on Friday the company told The Associated Press that Fishman remains as CEO of WaMu’s holding company and it was too early to say whether he and other executives would be replaced.
Re: Here's the problem, you see?
It seems apparent that the only clever business decisions that guys like this are capable of is negotiating their exit strategies.
Clearly, I have a lot to learn.
On a side note...
I've always been amazed that recipients of these wonderful exit packages are invariably reported to be looking for another job.
FuckinA, give ME $20 mil and it'd be off to the beach, screw this working shit.
Re: Here's the problem, you see?
Yeah, it's a bend-over, but the reach-around is to affix the blinders, rather than offer a stroke.
It's like watching a loop of Tom Cruise's greatest scenery chewing moments while chained to a chair, and someone's made off with the remote. :pinch:
Re: Here's the problem, you see?
It will be interesting to see how JP Morgan handles this given the absolute shitstorm that will rain down on them if these execs collect on the parachutes.
I'd love to see them just say "Fuck you, sue us", but the chances of that are admittedly slim.
Re: Here's the problem, you see?
Quote:
Originally Posted by
clocker
It will be interesting to see how JP Morgan handles this given the absolute shitstorm that will rain down on them if these execs collect on the parachutes.
I'd love to see them just say "Fuck you, sue us", but the chances of that are admittedly slim.
I predict that debate will be at largely subsumed and obscured by "bipartisan" rhetorical flourishes.
As an aside, I've always wondered, given that I would not choose to limit warranted compensation, what these clowns would consider to be "ridiculous" compensation?
"You've failed so spectacularly we are compelled to offer you a $50-billion severance package". :frusty:
Re: Here's the problem, you see?
Quote:
Originally Posted by
j2k4
I predict that debate will be at largely subsumed and obscured by "bipartisan" rhetorical flourishes.
Oh, I'll wager not.
I'm thinking that's the kind of red meat story that the press will be unable to resist.
Executive compensation for any of the industries that recently got government aid is going to be a real hot button issue.
Re: Here's the problem, you see?
Quote:
Originally Posted by
clocker
Quote:
Originally Posted by
j2k4
I predict that debate will be at largely subsumed and obscured by "bipartisan" rhetorical flourishes.
Oh, I'll wager not.
I'm thinking that's the kind of red meat story that the press will be unable to resist.
Executive compensation for any of the industries that recently got government aid is going to be a real hot button issue.
Then I predict the heat will bleach the "red" out of the meat, because there are capitalist lefties who are indistinguishable from capitalist righties.
There are all sorts of ways to take the edge off those types of disclosures.
Allow me to add that while I fervently hope you are right, I am overcome by my natural cynicism. :whistling
Re: Here's the problem, you see?
While this might not be the kind of story that traditional news media will pursue for more than a few news cycles, it's exactly the kind that net based thrive on.
Time will tell.
Re: Here's the problem, you see?
Quote:
Originally Posted by
clocker
While this might not be the kind of story that traditional news media will pursue for more than a few news cycles, it's exactly the kind that net based thrive on.
Time will tell.
Ah.
Quite right; I overlooked that...unforgivable, considering what we are doing just now.
Minus ten points.
Whichever way the partisan winds blow on the interweb, the chance of divining the truth is infinitely greater than when consuming the offerings of the mainstream. :whistling
Re: Here's the problem, you see?
but surely they must be worth these massive bonus and severance packages? I thought the invisible hand of the market would ensure this :huh:
Re: Here's the problem, you see?
Quote:
Originally Posted by
ilw
but surely they must be worth these massive bonus and severance packages? I thought the invisible hand of the market would ensure this :huh:
Invisible hand?
Where? :huh:
Re: Here's the problem, you see?
I'd be interested to know what their actual pay (excluding any bonuses) would be.
It might be cheaper just to have them sit around cooling their heels until their contracts expire. That way they would have no reason to claim good reason for quitting, and given the situation at WaMu it seems doubtful that they could expect to receive any bonuses.
