WaMu CEO Eligible for $12.65M in Salary and Bonuses

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The New York Sun

Washington Mutual Inc.’s new chief executive officer, Alan Fishman, will be eligible for at least $12.65 million or more in salary and bonuses next year, the company said yesterday in a securities filing.

Mr. 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, Mr. 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, Mr. 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.

Washington Mutual removed Mr. Killinger, who had been with the thrift for 25 years, as losses mounted from failed mortgages.

Mr. Fishman is the former president and chief operating officer of Sovereign Bank and president and CEO of Independence Community Bank.


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