WaMu execs could get millions in severance pay
Alan Fishman, the CEO of Washington Mutual Inc. for only a few weeks before the Seattle-based thrift failed, would be entitled to $19.1 million in severance and bonus pay.
Two other top WaMu executives have clauses in their employment agreements that would also pay them a total of $19 million in cash severance if they are terminated by JPMorgan Chase & Co.
WaMu was seized by federal regulators and sold to JPMorgan Chase & Co. Sept. 25.
According to a WaMu filing with the Securities and Exchange Commission, Fishman, who replaced Kerry Killinger as WaMu CEO on Sept. 8, signed an agreement that would pay him a cash severance of $11.6 million if he is terminated this year or resigns. He also would be allowed to keep his $7.5 million signing bonus.
The WaMu executive with the biggest termination package is Stephen Rotella, president and chief operating officer, who is entitled under his current employment agreement to a cash severance of $12.7 million if he is terminated or quits with “good reason.”
Meanwhile, CFO Thomas Casey would receive a cash severance of $6.3 million if he is fired or quits with good reason.
Both Rotella and Casey also could receive millions more in non-cash severance compensation under their employment agreements.
