Comments on: The Credit Crunch and Executive Pay http://blog.robertsalomon.com/2008/03/07/the-credit-crunch-and-executive-pay/ Sat, 06 Mar 2010 19:47:14 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: The View from Main Street http://blog.robertsalomon.com/2008/03/07/the-credit-crunch-and-executive-pay/comment-page-1/#comment-166 The View from Main Street Wed, 12 Mar 2008 01:23:50 +0000 http://blog.robertsalomon.com/2008/03/07/the-credit-crunch-and-executive-pay/#comment-166 Don't forget the geniuses at WaMu. In their recently issued 8-K, Washington Mutual stated that in 2008, cash bonuses will be determined by, among other items, operating profits excluding loan losses and REO expense. So basically, the board decided to exclude loan losses? Seriously? So their business, is, um... making loans, right? and the Board of Directors decides it's OK to exclude loan losses? Can someone pass whatever it is those guys were smoking over this way? I think I need a hit. Oh, and now that I've taken the magic pixie dust, I'm an executive at WaMu and here's what we should do... let's write down as much as we can. After all, it won't affect our bonuses. Then, when things improve, we can look like we hit a home run with earnings and guess what? That impacts our bonuses. Woo hoo! Someone pass the bong. Don’t forget the geniuses at WaMu. In their recently issued 8-K, Washington Mutual stated that in 2008, cash bonuses will be determined by, among other items, operating profits excluding loan losses and REO expense. So basically, the board decided to exclude loan losses? Seriously? So their business, is, um… making loans, right? and the Board of Directors decides it’s OK to exclude loan losses? Can someone pass whatever it is those guys were smoking over this way? I think I need a hit.

Oh, and now that I’ve taken the magic pixie dust, I’m an executive at WaMu and here’s what we should do… let’s write down as much as we can. After all, it won’t affect our bonuses. Then, when things improve, we can look like we hit a home run with earnings and guess what? That impacts our bonuses. Woo hoo! Someone pass the bong.

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