Thread: Washington Mutual CEO leaving with $19M in pocket

Posted Sep 30 2008, 12:47 PM by Kim Peterson Rating: Filed under: Kim Peterson, JPMorgan, Washington Mutual

Congress wants to crack down on CEO mega-salaries for banks participating in the bailout. And while the politicians argue how best to do that, Alan Fishman of Washington Mutual is headed for the doors with $19 million in his pocket.

If that wasn't outrageous enough, consider this: Fishman started the job three weeks ago. I never saw the employment ad Fishman answered, but it must have read something like this:WANTED: Top executive for train-wreck bank about to be seized by federal regulators. Must be able to look busy while FDIC sells business from under you. Previous experience with angry shareholders sitting on worthless stock a plus. Perks: $7.5 million hiring bonus and $11.6 million cash severance.

Fishman got the best temp gig in history. He gets to keep the bonus and severance pay, though he must stay on the job while JPMorgan Chase completes its purchase of WaMu's banking assets.

To be fair, Fishman wasn't the one that took WaMu down a path lined with toxic mortgages and other bad assets. No, that role belonged to former CEO Kerry Killinger, who received $54 million over five years before leaving earlier this month. He's eligible for around $20 million in severance pay.

Other execs are also cashing in big. President Stephen Rotella gets $12.7 million in cash if he's terminated or quits with "good reason," according to the Portland Business Journal. And CFO Thomas Casey would get a cash severance of $6.3 million.

And WaMu shareholders got huge payments of...oh, wait. The stock is worthless. Shareholders got wiped out.

Sounds like I picked the wrong sectors of commerce to be involved in. My Lear jet and yacht both are out of fuel, I have had to fire my cooks, maids, butlers, chauffer and am now cutting my own lawn and vacuuming the 18-room mansion.