Washington Mutual fired CEO Kerry Killinger today.
He was replaced by Alan Fishman, former president and COO of Sovereign Bank. The company has also entered a “memorandum of understanding” with the Office of Thrift Supervision, which is like probation for banks, requiring it to disclose lots of info to regulators throughout the year. Killinger built WaMu into one of the nation’s largest thrift banks, but then got the bank into too much of the sub-prime mortgage business and over-aggressively expanded its retail outlets. His rolling head joins a line of other recently executed banks CEOs, Wachovia’s Ken Thompson, Merrill Lynch’s Stanley O’Neal and Citigroup’s Charles Prince.
How much severance is he getting? WSJ says:
People close to the situation said Mr. Killnger would retire under the terms of his employment contract with no extra severance benefits. According to the most recent Securities and Exchange Commission filing related to Mr. Killinger’s compensation, he held 1.2 million shares of common stock as of Dec. 31, 2007, currently worth about $5.2 million. He also has $14.9 million in deferred compensation and $3.5 million in pension benefits, according to the filing.
WaMu Placed On Probation As It Ousts CEO Killinger [Dow Jones] (Thanks to Dariush!)