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Washington Mutual slashes executive bonuses

Washington Mutual Inc., the country's biggest savings and loan, said Tuesday it slashed 2007 cash bonuses for its top executives.
/ Source: The Associated Press

Washington Mutual Inc., the country's biggest savings and loan, said Tuesday it slashed 2007 cash bonuses for its top executives.

Stephen Rotella, WaMu's president and chief operating officer, will receive a bonus of $912,800 for the year, a 71 percent cut from the $3.1 million he got in 2006, according to a filing with the Securities and Exchange Commission.

Chief Financial Officer Thomas Casey's bonus was cut 71 percent to $391,200. James Corcoran, president of WaMu's retail banking division, will receive $277,100, or 70 percent less than a year ago.

Last week WaMu said Chief Executive Officer Kerry Killinger would not accept a bonus for the year, after the thrift reported it swung to a $1.87 billion loss, dragged down by the sinking value of its mortgage portfolio and rising defaults and delinquencies. Like other U.S. financial institutions, WaMu has been struggling since summer with turmoil in the housing and credit markets.

In 2006, Killinger's bonus totaled about $4.1 million.

Washington Mutual said Tuesday that the executives also will forfeit 67.4 percent of their restricted stock awards for the year.

WaMu's shares added $1.22, or 9 percent, to close at $14.77.