MBIA Inc. (MBI) Chief Financial Officer Chuck Chaplin and Chief Operating Officer William Fallon each took home $6.2 million in pay last year, the bond insurer hobbled by soured mortgage debt said in a regulatory filing.
The sums represent amounts they realized during the year, including salary, cash bonuses and pay accrued in previous periods, the Armonk, New York-based company said yesterday in a filing with the U.S. Securities and Exchange Commission.
The figures exclude the value of new, unvested equity awards and deferred long-term incentives, according to the filing. MBIA reported $10.7 million in 2012 pay for each of the executives based on SEC reporting rules. They earned $3.5 million each based on the view of the board’s compensation committee.
Kevin Brown, an MBIA spokesman, declined to comment.
The New York State regulator for MBIA’s insurance units criticized the company in December for paying four executives, including Chaplin and Fallon, a total of $11.4 million in cash to stay for three more years. Chaplin and Fallon were set to receive $3.5 million each and must repay a portion and forfeit additional stock awards if they leave before December 2015 without the board’s consent.
The credit rating of MBIA’s insurance unit that was created in 2009 to jumpstart its municipal-debt guarantee business was cut three levels in February to junk by Standard & Poor’s.
While the National Public Finance unit, reduced to BB from BBB, was created to split off its main muni-bond business from mortgage losses, S&P said the business may not be able to recover about a $1.6 billion intercompany loan to its distressed unit if regulators seize that subsidiary as claims erode its capital.
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