WaMu CEO Could Cash In on a Sale
Fishman will receive a "sign-on" cash bonus of $7.5 million this year for agreeing to take the CEO job. He also receives equity awards including options to purchase 5 million shares of the company's common stock that will vest at certain stock price targets between $10 and $18 a share as well as 612,500 of restricted shares for joining the company.
Under the employment contract, which expires at the end of 2011, Fishman will be paid $1 million in annual salary, up to $3.65 million in an annual bonus as well as the opportunity to receive long-term incentive awards of at least $8 million, the filing says.
Fishman will receive "a large share of both cash and incentive compensation if Washington Mutual sells," according to Fred Cannon, the associate director of research and chief equity strategist at Keefe, Bruyette & Woods. "
While most observers would agree that a sale of the struggling mortgage-heavy company would be the best option at this point, a deal seems to be increasingly difficult to do so.A Bloomberg article on Wednesday suggested that accounting rule changes that require banks to value assets "at market prices instead of deriving values from measures including the purchase price" is hindering bank M&A. The article said that at least three suitors have walked away this year from any agreements with WaMu or National City (NCC), another troubled bank, because of the rule changes.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV