JP Morgan swiftly ended speculation about the fate of WaMu’s top execs when the firm revealed Thursday that the majority of WaMu’s top brass would be let go. Today.
To be fair, JP Morgan only has so much office space, and they already had to make room for some former Bear Stearns employees.
Among those canned, former WaMu CEO Alan Fishman who was promised an $11.6 million severance package for three weeks of work. The WSJ reports that he’ll keep his $7.5 million signing bonus but not try to get the $11.6 million, even though it seems like JP Morgan would pay up.
A week after purchasing banking assets belonging to the nation’s largest savings-and-loan association, New York-based J. P. Morgan told new employees Thursday that WaMu Chief Executive Alan Fishman; President Steve Rotella; Chief Legal Officer Michael Solender; Executive Vice President Todd Baker; Daryl David, chief human resources officer; and Frank Baier, special assistant to Mr. Fishman, wouldn’t continue working for J.P. Morgan. Their last day is Friday. Ironically, Mr. Rotella had run J.P. Morgan’s mortgage business before he joined WaMu at the end of 2004.
Chief Financial Officer Thomas Casey will stay through December, then depart from the company, according to a person who participated in a conference call Thursday about the changes.
Among former WaMu executives who stay are Alfred Brooks, president of the commercial group; David Schneider, president of home loans; and Anthony Vuoto, president of card services, the person said.
J.P. Morgan told employees it would pay deferred compensation and some form of severance for employees who qualify under existing WaMu benefit plans. The deferred compensation was the responsibility of WaMu’s holding company, which filed for bankruptcy Sept. 26. J.P. Morgan, which bought WaMu’s bank assets for $1.9 billion, wasn’t obligated to honour those benefits…
However, J.P. Morgan won’t honour change-in-control clauses for top executives, many of whom had contracts stipulating exit packages in the event of a sale. Mr. Fishman’s contract with WaMu’s holding company, for instance, would have awarded him an additional $11.6 million if he resigned or was terminated, on top of a $7.5 million signing bonus. Mr. Fishman has decided to keep the $7.5 million bonus and not pursue the $11.6 million, according to people familiar with the situation.
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