Can We Call a “Flagrant Foul” on CEOs?

Written by lame

Call a Flagrant Foul and a Technical on the WaMu Board of Directors, too. The end is nigh for Washington Mutual Bank:

(Reuters) – U.S. federal regulators recently called a number of banks asking if they would consider buying Washington Mutual Inc should it eventually falter, the New York Post said, citing sources.

Yet WaMu pays millions to the ousted and new CEOs:

New Washington Mutual Inc. Chief Executive Alan Fishman received a $7.5 million cash bonus to sign on with the ailing Seattle-based consumer bank and mortgage company, and could earn millions more than that next year if he’s able to reverse WaMu’s fortunes, according to a federal filing Thursday.

Fishman’s predecessor, Kerry Killinger, meanwhile, could be leaving the company with millions as well. The company hasn’t said how much his exit pay will differ from the $22.3 million exit package it noted in a filing last spring, which valued shares near $14.

Another article reports that the new CEO is set to get at least $12.65M pay:

NEW YORK — Washington Mutual Inc.’s new CEO, Alan Fishman, will be eligible for at least $12.65 million or more in salary and bonuses next year, the company said Thursday in a securities filing.

Fishman, who replaced Kerry Killinger as CEO on Monday, also received a $7.5 million signing bonus for joining the company, according to a regulatory filing made with the Securities and Exchange Commission.

Under his employment agreement, Fishman will receive a base salary of $1 million, a target bonus of up to $3.65 million and a long-term incentive award starting in 2009 of at least $8 million.

In addition, he is eligible for stock awards that include 612,000 restricted shares, which will vest over three years. He could also receive options to buy 5 million additional shares, with some of the shares vesting over time and some vesting linked to the shares’ performance.

Under his employment agreement, Fishman, 62, could also be eligible for a lump-sum payment of $10.5 million, plus immediate vesting of 1.5 million stock options, if he is terminated without cause.