Stock Loses 70% Value Execs Get Bonuses

[DeSwiss]

Troubled MBIA Still Gives Execs 60 Percent Bonuses

Associated Press
March 3, 2008 12:24 PM

MBIA Inc. granted raises to some of its executives and offered bonuses to managers who stay another year as part of a plan to retain key people during a troubled period for the company.

In a regulatory filing Monday, the Armonk, N.Y.-based bond insurer said its compensation committee last month approved salary increases of as much as 60 percent for some executives. The committee also approved a "retention award" of as much as $2.3 million for executives who stay with the company a year.

MBIA said it approved raises for 2008 after the company's stock plummeted 75 percent in 2007, because the company needs to retain people during a "critical period."

MBIA underwrites insurance policies that promise to repay bondholders when bond issuers default. The company, which insures $680 billion in debt, has been threatened by ratings downgrades as decaying credit quality has heightened expectations for insured defaults. The company lost $1.9 billion in 2007.

http://biz.yahoo.com/ap/080303/mbia_compensation.html?.v=1">MORE

- I guess MBIA didn't get the "recession memo" from the Fed. They must still be getting their financial forecasts from Dubya.

On the other hand, they may have decided that its more important to have all the hands they could get at the shredders so they can get rid of all the evidence proving their incompetence. Of course giving these some of these dunderheads 60% raises after losing $1.9 billion dollars last year doesn't help on that score either.

I wonder if their secretary's got raises too????
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DeSwiss

[Mike03]

1. The Financial Sector Corporations

are notorious for this sort of debauchery. Even when banks or financial institutions fail to the point at which they have no choice but to be acquired, the CEO, Pres, CFO often get golden parachutes. They are in essence paid to step down.

[leftofthedial]

2. capitalism is theft anyway

so what's the beef?

[DeSwiss]

5. Unfortunately....

...we've seen all this before. However, in this case it would appear as though these executives "stepped down" a long time ago.

- They're just still on the payroll...

[aquart]

3. Aren't these the key people they should LOSE?

[DeSwiss]

6. But, but, but....

...."the company needs to retain people during a "critical period."

- It would make more sense though, if they hadn't retained the same people who "created the critical period...."

[Baby Snooks]

4. Enron Economics...

It's called Enron economics. Milk it for all it's worth until the company collapses. And then act dumb when the SEC and the Justice Department starts knocking on the door wanting to see the books. And then call whoever in Congress you've bought to call the Justice Department to take care of it for you. Way it works now. They learned well from Enron.

[DeSwiss]

8. Well if its an Enron kinda thing....

...the least they could do is leave like 'Ol Ken did.

- You know, resignation due to murder suicide death from natural causes....

[RB TexLa]

7. Lost $1.9B, perhaps the board felt they could have lost more if not for

the people they want to retain, or that in a business that requires stability they felt keeping the management team in place was worth it.

[DeSwiss]

9. Or....

...by keeping them on the payroll, they're less likely to divulge the truth.

- Hey, it happens. Everyone isn't as honest as me and you....