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WaMu bonuses - incredible!

deejayohdeejayoh
edited March 2008 in Seattle Real Estate
WaMu rewrites executives' bonus plan to dodge subprime damage
WaMu has revised its bonus plan for nearly 3,000 top executives so continuing damage from the subprime lending collapse won't crimp their annual awards.

The struggling Seattle-based lender said in a regulatory filing Monday it will exclude the cost of soured real-estate loans and foreclosure expenses when it calculates net operating profit, the biggest component of executives' 2008 bonuses.
:shock: :roll: :shock: :roll: :shock: :roll: :shock: :roll: :shock:

Comments

  • AlanAlan
    It is good to be an executive.
  • Lake Hills RenterLake Hills Renter
    I guess this is why Cramer added the entire WaMu board of directors to his wall of shame (not that I watch him, was just passing through).
  • SeattleMooseSeattleMoose
    "Let them eat cake!!".......

    Time to reward the captain and officers for steering the ship onto the rocks.

    Let's see, stock down over 60%, multi-billion losses, massive layoffs and office closings....and the SOBs give themselves a HUGE bonus???

    Slappin each other on the back and saying "good work ol boy" to each other......unethical, immoral, greedy pigs.
    :x
  • AlanAlan
    What else do you expect when the foxes are running the henhouse?
  • femtofemto
    I threw up in my mouth a little with I read this. I can only hope it induces the only logical response, which is a shareholder revolt that tosses these asshats out on the street (after stripping any golden parachutes). Beyond the obvious obscenity of excluding losses, this new plan gives a huge incentive to rape consumers for every last penny through whatever new fees they can dream up.
  • david_mcmanusdavid_mcmanus
    And who says they won't fail? I'm got some ideas for that big building downtown.

    http://biz.yahoo.com/rb/080307/wamu_funds.html?.v=1
  • MarkorMarkor
    Alan wrote:
    What else do you expect when the foxes are running the henhouse?
    Precisely. "Public" corporations are a sham nowadays.
  • Rhonda PRhonda P
    I wonder which exec thought up this advertising idea:

    http://blogs.king5.com/citizenrain/2008 ... ng_ra.html
  • fasterfaster
    Now you know why their billboards say, "WOO HOO!"

    edit: should've clicked the link in the previous post. Kary Krismer would not have made the same mistake. :)
  • femtofemto
    I've long thought that if anybody was going to eventually do something about this sort of stuff it would have to be the pension funds. Not because they're inherently noble, but because they by nature have to think longer term, and it's short term thinking (particularly "how do I maximize my bonus this year") that got us into this mess. From the PI http://seattlepi.nwsource.com/business/354147_wamu08.html:
    The union-affiliated investment advisory group that wants three Washington Mutual Inc. directors to explain their role in the mortgage crisis now plaguing the company says it's not getting much response from WaMu, and it is close to recommending that shareholders vote against their re-election to the board.

    CtW Investment Group is also unhappy about WaMu's recent disclosure of an executive compensation bonus plan that excludes credit-loss and foreclosure costs from performance targets, and says it might expand its recommendation of voting against incumbent directors to members of the human resources committee, which approved the bonus plan.
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