Alan H. Fishman Received a $20 Million Dollar Payout From WaMu For 17 Days of Work
It's good work if you can get it.
Alan H. Fishman, the recently hired CEO of the now J.P. Morgan-owned Washington Mutual Bank, will reportedly receive close to $20 million dollars IN CASH for his quick 17 days on the job.
Fishman, according to an article on Foxnews.com (link below), was formerly the chairman of the Meridian Capital Group and was much-coveted by the management of Washington Mutual. This led to the company giving Fishman a $7.5 million dollar bonus just to accept the job, plus a cash severance of $11.6 million dollars, both of which he will be paid in full. Fishman was also entitled to an annual bonus (which he won't receive), plus a bonus of $8 million dollars if he had stayed on the job through 2009 (which obviously won't happen now that the company is in the hands of J.P. Morgan). Also, any shares or share options that Fishman may have been given are now worthless, but don't feel too sad for him - almost $20 million dollars for just 17 days of worth is not too shabby.
WM common shareholders and even debtholders are now left with nothing, but Fishman will walk away with nearly $20 million dollars. There is something wrong there, and this is just another indictment of CEO pay in American. CEOs and other key members of management teams chronically plunder the company's that they are running, bestowing themselves and other members of management with untold riches, all at the expense of their shareholders.
It is interesting why Washington Mutual management even bothered to hire Fishman, given that they opened their books to possible buyers weeks ago. Washington Mutual's fate was sealed a long while ago, with the FDIC officially seizing the company on Thursday.
Either way, Alan H. Fishman is not complaining. He made over a million dollars per day during his 17 days on the job, and is now free and clear to find himself a new job, and earn another big signing bonus. Only in America.
Source: WaMu Gives New CEO Mega Payout as Bank Fails
Filed under: The Economic Meltdown | Stock Market Scandals