This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

WaMu CEO Could Cash In on a Sale

Editor's note: Our new "On the Brink" series will provide daily insight into the financial firms facing capital shortfalls and the growing pressure from short sellers in the market.

Washington Mutual's (WM) new CEO Alan Fishman could stand to make a windfall if his brief tenure ends with an acquisition by JPMorgan Chase (JPM) or another suitor.

The American Banker reported Friday that JPMorgan is in "advanced discussions" to acquire the ailing Seattle thrift. The article said that "negotiations are ongoing at the highest levels of both companies," which includes JPMorgan CEO Jamie Dimon and Fishman.

While it was widely speculated that Washington Mutual brought Fishman in to replace WaMu's ousted longtime CEO Kerry Killinger to effect a sale, the company has not explicitly said so. But he certainly will be well rewarded if a deal is brokered, according to a Securities and Exchange Commission filing Thursday detailing Fishman's employment agreement.

According to the filing, if Fishman is terminated without "cause" or if he resigns as a result of "constructive termination," the employment agreement also provides for him to receive a lump sum payment equal to 2.5 times then applicable annual base salary plus the annual bonus payment from the preceding year, in addition to certain options vesting.

WaMu will also pay "certain tax gross-up payments" to Fishman if he is subject to "golden parachute excise taxes" related to a change in control, the filing says.

A source familiar with the agreement says the term "constructive termination" is a standard provision in an executive employment agreement that says if a company were to either take away the CEO's authority, reduce his compensation, or move him away from Seattle, without his consent. A sale of the company could be one of several scenarios in which there is a "constructive termination" of a CEO, the source says.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs