Recommended Reading - WaMu Board Protects Bonus Compensation of Top Execs

As the pay of top executives becomes a topic of discussion in Washington D.C. (today's hearings on C-Span) according to story in Reuters Washington Mutual's WM (NYSE) Board of Directors earlier this week defied the growing resentment over executive pay and,

approved a plan which helps protect its management's bonus targets from the impact of the subprime loan fallout, according to a filing with U.S. regulators.

... The filing, made with the Securities and Exchange Commission on Monday, refers to targets for WaMu chief executive Kerry Killinger, chief financial officer Thomas Casey, chief operating officer Stephen Rotella, and retail banking chief James Corcoran.

The board's committee said in light of the challenging business environment and the need to evaluate performance across a wide range of factors it will take a three-step approach to rewarding its executives including subjectively evaluating company performance in credit risk management.

Boards need to at least face reality in today's market and try make sound judgments. It does not appear that WaMu's board succeeded in this circumstance. Will their filing stand? Stay tuned.

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Financial Week 3/10