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CEO pay: What those involved in the financial meltdown made
From: David Farber <dave () farber net>
Date: Tue, 23 Sep 2008 20:31:37 -0400

Begin forwarded message:

From: bobr () bobrosenberg phoenix az us
Date: September 23, 2008 6:44:49 PM EDT
To: dave () farber net
Subject: CEO pay: What those involved in the financial meltdown made


Perhaps of interest to folks on I.P.


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Tuesday, September 23, 2008 - 11:58 AM MST | Modified: Tuesday, September 23, 2008
- 2:05 PM

CEO pay: What those involved in the financial meltdown made

Phoenix Business Journal - by Mike Sunnucks and Chris Casacchia

As Congress considers a $700 billion bailout for Wall Street and the banking sector, there are calls to restrict the pay and severance packages for CEOs at investment houses, banks and mortgage lenders poised to be benefit from the plan put forward by U.S. Treasury Secretary Henry Paulson and Federal Reserve chairman Ben Bernanke.

Executives from some of the major investment and commercial banks involved in the financial upheaval and bailout earned hefty paychecks last year, according to proxy
statements outlining their salaries, bonuses and stock options:

* Lehman Brothers Chairman and CEO Richard Fuld Jr. made $34 million in 2007. Lehman (OTC:LEHMQ) filed for Chapter 11 Bankruptcy protection earlier this
* Goldman Sachs (NYSE:GS), which Sunday gained Federal Reserve Bank approval to become a bank holding company, paid its Chairman and CEO Lloyd Blankfein $70 million last year. Co-Chief Operating Officers Gary Cohn and Jon Winkereid were
paid $72.5 million and $71 million, respectively.
* American International Group’s chief executive Martin Sullivan got a $14 million compensation package in 2007. He was ousted in June. The insurance giant (NYSE:AIG) is on the receiving end of an $85 billion federal bailout. Edward
Liddy took over as AIG’s chief executive earlier this month.

* Morgan Stanley Chairman John Mack earned $1.6 million. Chief Financial Officer Colin Kelleher got a $21 million paycheck in 2007. Morgan Stanley (NYSE:MS) also received approval to become a banking holding company, a shift that allows Morgan and Goldman to bring in bank deposit assets which offer more solid
financial footing.
* Merrill Lynch CEO John Thain was paid $17 million in salary, bonuses and stock
options in 2007. Merrill (NYSE:MER) is being acquired by Bank of America
(NYSE:BAC). BofA CEO Kenneth Davis earned $25 million in 2007.
* JP Morgan Chase & Co. Chairman and CEO James Dimon earned $28 million in 2007. Chase (NYSE:JPM) acquired troubled investment house Bear Stearns earlier this year with the federal government promising to take on as much as $30 billion in
Bear assets to help get the deal done.
* Fannie Mae CEO Daniel Mudd received $11.6 million in 2007. His counterpart at Freddie Mac, Richard Syron, brought in $18 million. The federal government announced earlier this month it was taking over the mortgage backers with Herbert Allison to serve as Fannie CEO and David Moffett the new CEO at Freddie. * Wachovia Corp. Chairman and CEO G. Kennedy Thompson received $21 million in 2007. He was succeeded by Robert Steel as CEO in July. Steel is slated to get a $1 million salary with an opportunity for a $12 million bonus, according to CEO Watch. Wachovia (NYSE:WB) is one of the banks that could be sold in the midst of
the financial crisis.
* Seattle-based Washington Mutual (NYSE:WAMU) will pay its new CEO Alan Fishman a salary and incentive package worth more than $20 million through 2009 for taking the helm of the battered bank, according to the Puget Sound Business
* CEOs of large U.S. corporations averaged $10.8 million in total compensation in 2006, more than 364 times the pay of the average U.S. worker, according to the latest survey by United for a Fair Economy. In 2007, the CEO of a Standard & Poor’s 500 company received, on average, $14.2 million in total compensation, according to The Corporate Library, a corporate governance research firm. The
median compensation package received was $8.8 million.

The Puget Sound Business Journal, a sister publication, contributed to this story.

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