Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

MBIA Pays Executives $11.4 Million to Stay for Three More Years

The MBIA Inc. offices sit at 650 Fifth Avenue in New York, U.S. Photographer: JB Reed/Bloomberg
The MBIA Inc. offices sit at 650 Fifth Avenue in New York, U.S. Photographer: JB Reed/Bloomberg

Dec. 26 (Bloomberg) -- MBIA Inc., the bond insurer locked in a three-year legal battle with Bank of America Corp., is paying executives $11.4 million in cash bonuses to stay with the company for at least three more years.

The board of the Armonk, New York-based firm approved compensation for Chief Financial Officer Chuck Chaplin, Chief Operating Officer William Fallon, Chief Legal Officer Ram Wertheim and Chief Portfolio Officer Anthony McKiernan that include the cash retention awards and 2 million shares of stock.

Chaplin and Fallon will receive $3.5 million each, Wertheim $2.4 million and McKiernan $2 million for staying on through December 2015, according to a regulatory filing today. If an executive leaves before then without the board’s consent, he must repay a portion of the bonus and forfeit additional stock awards.

MBIA said in March that its four top executives, Chaplin, Fallon, Wertheim and Chief Executive Officer Jay Brown, wouldn’t receive a cash bonus or long-term incentive pay for 2011 after talks with the New York State Department of Financial Services.

The insurer is battling Bank of America over faulty loans included in toxic mortgage-backed securities that it insured, while the bank is suing MBIA over a corporate restructuring.

To contact the reporter on this story: Mary Childs in New York at mchilds5@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.