WaMu Execs to Shareholders: Woohoo! Bonuses!

WaMu is like a free public water fountain these days. Except instead of water, it's all bad news. And it's not free, it's costing billions. But it is highly public!

Last week there was a rumor of a buy-out floating around that lifted the stock slightly. But then JPMorgan Chase & Co. bought Bear Stearns and everyone went, Oh, that's what the buy-out rumor was and WaMu's subprime-mortgage-battered stock plunged again. Moody's Investor Service has already cut WaMu's credit rating to a notch above junk, and says it "remains on review for another downgrade."

WaMu stock was trading at $44/share back in May; now it's around $9.80. What's that mean? Bonuses all around! MSN Money sounds, well, put out about performance bonuses that don't take performance into account:

Washington Mutual execs will collect bonus pay under new, easier-to-satisfy rules:
* Bonuses are now linked to achievements like growth in retail banking fees. That hardly seems a strenuous hurdle given the way ATM and other bank fees are rising.
* Executive bonuses will be doled out for squishy achievements such as improvements in customer loyalty.
* When the bank does use traditional metrics like profitability, it won't count the impact of mortgage losses and foreclosure costs.

"Achievements like growth in retail banking fees"? WaMu? The we won't nickel and dime you people? This really shakes our faith in marketing campaigns.

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By MvB in News on March 19, 2008 2:15 PM

Comments [rss]

seethruskin

"We don't nickel and dime you" -- ARE YOU KIDDING ME???

WAMU's been nickel & diming me for years now, and driving me up a wall with ludicrous charges at every possible turn. Despite having overdraft protection tied to my bloated savings account, they still find ways to charge me for NSF fees, even when my online account indicates sufficient funds.

These guys are full of it. Having worked in the advertising industry, I know why and how they came to this tagline, "We don't nickel & dime you". It's because they DO nickel & dime you.

If you're thinking about banking with WAMU, don't do it because you think they won't charge you fees at every opportunity -- it's their bread & butter.

Troy Morris

I always just go into the branch. They're much friendlier than on the phone. That's a general rule for most people, though. It's easier to communicate face to face.

That being said, WaMu... you could be so good, but you are being so bad.

bigtimetopbanana

I just got a WaMu account, and got stiffed for a "ATM BALANCE INQUIRY FEE" of $2 yesterday.

Just for checking my balance? Not even getting any money out?

When I spoke with WaMu customer service about this, I got through to a supervisor who said it was policy for this charge when you check your balance at a non-WaMu ATM, and is stated in the account disclosure docs.

I explained that I was a new WaMu customer, excited about being with "The Home of Free Checking" and was most disappointed with being stiffed in such a way. Also saying that I have never seen any other bank charge such a fee.

The supervisor again said it was WaMu policy.

I asked that the supervisor waive this fee for this one occassion, and I will be willing to pay if I do it again. She agreed, and waived the fee.

I must admit, I got pretty stern with her. I don't normally do that. But I was explicit in saying what I wanted to happen, and I was pretty sure supervisor would be authorised to remove a single $2 charge.

cynicali

As a former WaMu employee, I'm glad I got out when I did. Luckily I needed to cash in my stock to make the move north. It was around $43/share back then.

partyfernandez

as a wamu employee, i can tell you........we hate it too

MvB

Clint: Yep! Absolutely true. They couldn't trademark the Simpsons version, so they made up their own. It just kills me that they've unveiled this stupid-ass catchphrase just as the business is going down in flames.