In short order, the shareholders of Washington Mutual (NYSE: WM) have lost billions. A tier-1 private equity investor, TPG, has lost $1.3 billion on the company. And, unfortunately, thousands of WaMu employees have lost their jobs.
However, there are some winners. For example, there are the short sellers. JP Morgan (NYSE: JPM) is also likely to do well since the firm bought WaMu's assets for a mere $1.9 billion.
But there appears to be yet another interesting beneficiary: Alan Fishman. He is WaMu's CEO, who took the top job 18 days ago.
As should be no surprise, he signed a juicy contract: a $7.5 million signing bonus and a lump-sum payment for severance that comes to $6.15 million. In other words, if he leaves the company, he'll walk away with $13.65 million.
That's a pretty good deal in light of the fact that WaMu is the biggest bank collapse ever.
Moreover, I suppose it is yet further evidence of why Americans have low regard for the financial system. And despite huge bailouts, it's probably a good bet that little will change.
Tom Taulli is the author of various books, including The Complete M&A Handbook
Reader Comments (Page 1 of 1)
9-27-2008 @ 11:01AM
Shawn said...
If you have a high credit card balance on your WAMU or "WAMU eBay" mastercard, you had better hurry up and pay on most of it. Why so? Well, since [WAMU] got acquired by J.P. Morgan for $1.9 billion, Washington Mutual are on the prowl "credit card customer accounts" on who's behind on their payments or have high balances. They just called my house too early this morning asking for payment before 9am. I mean dayum boys, they check is in the mail....lol
http://www.ShawnDrewry.com
P.S. If WAMU had an affiliate program online for publishers to promote, they wouldn't be so houndish for money. I just been paying on my bills and school tuition, but I'm not defaulting any payment to Washington Mutual...:-)
9-27-2008 @ 11:19AM
scherf.com said...
MODERN-DAY ROBBERY by the U.S. government.
The theft/robbery of Wamu by the FDIC is worse than the recent seizures of private companies in communist Russia.
Here the FDIC comes in and disownes the shareholders of their assets and then the FDIC turns around and sells the loot to JP Morgan for $1.9 billion.
In this case the FDIC acted illegally and literally stole private property as they paid nothing, but just seized private property from their owners. It's unconstitutional and as a series of major multi-billion dollar class actions against the FDIC are under way in the Wamu robbery/theft, the taxpayers will have to foot the bill of many billions of dollars.
This theft/robbery will have severe consequences for the regulatory body involved in this modern-day communist robbery of private property.
9-27-2008 @ 2:12PM
DONNA said...
WHAT A HECK OF A LOTTERY TICKET FOR THE OUSTED CEO OF WAMU
9-28-2008 @ 9:04PM
Tiger said...
Is anyone know WM stock worth any money in the near future?
9-29-2008 @ 1:40AM
shareholder said...
This is a sad day for all of us shareholders and employees of WaMu... we were robbed blind by the feds and no one said or did anything. Chase, like other firms were circling like vultures, waiting for the feds to move in. They all knew what was going on... this was the plan from beginning on the week of the take over...
The run on the bank was caused by the media and not one agency thought of regulating them or to set the record straight... they let the run on the bank happen right in front of their eyes.
Former CEO Kerry Killinger was so selfish and dumb enough not to sell at $8 per share before turning to TPG and investors for money. He was too concerned about his own legacy and income that he forgot what his job functions were and who he wrote his paychecks. Oh and he was paid over $22 million in separation package.
And now Alan Fishman will get paid over $18 million dollars for three weeks of work? humm… since he failed to do his job as a CEO to secure the company... should he be compensated $18 millions?
Oh and Stephen Rotella (President and COO) is getting his $12 million plus package for doing what? Running WaMu into the grounds? This is on top of his millions in bonuses.
Are they serious? We need to stand up... Open up your eyes people... this just doesn’t happen over night.
Everyone in the executive team of WaMu should be held accountable along with the feds who led this take over without any recourse or consideration for the employees' retirements, public pensions and share holders.
9-30-2008 @ 6:23PM
ess said...
If he walks with that much money...I'm sending in a "No payment in Protest" for my next mortgage payment.
10-04-2008 @ 8:12AM
Priyanka said...
I want answer for my question that what should be kept in mind while decoding the compensation of CEO of pharmaseutical industry & why?
please send answer to my mail