Something Stinks Here

7/23/08: Wachovia Corp. lost a staggering $8.9 billion in the second quarter, leading the nation's fourth-largest bank to cut its dividend and slash more than 6,000 jobs in response to mortgage-related losses. The bank's results were much worse than Wall Street anticipated, a stark contrast to its big bank rivals that handily beat the low targets analysts had set. Wachovia said it lost $8.86 billion and is slashing its dividend after losses tied to mortgages soared. The bank also said it would lay off 6,350 current employees, and leave unfilled another 4,400 open positions. The bank has already cut 2,000 retail mortgage jobs, it said.

9/9/08: Just for taking the job, Wachovia Corp.'s new chief financial officer gets an upfront bonus of $4 million, 1 million stock options and 800,000 shares of restricted stock, the Charlotte bank said in a filing this morning. Under his employment agreement, the new CFO each year gets a salary of $500,000, a target bonus of $3.75 million and a target stock grant of $3.75 million. For 2008, he will receive a guaranteed minimum bonus of $937,500, payable in February 2009. The agreement also allows for severance payments if he is terminated for “good reason” or “without cause.” The company also will cover taxes owed if he loses his job in the case of a merger or acquisition.