Former MBIA chief got $5.2 million in severance
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- March
- 18
The former chief executive of MBIA Inc. got a $5.2 million severance package when he left the company last month following a year in which the company’s shares dropped 74.5 percent, the troubled Armonk-based bond insurer disclosed this morning.
Gary C. Dunton received a cash payment of $2.79 million and a “special recognition bonus” of $960,000, the company said in a proxy statement filed with the U.S. Securities and Exchange Commission.
His package also included $1.09 million through the accelerated vesting of restricted stock, $200,000 in consulting fees and $123,000 in medical benefits, legal fees and outplacement services, the company said.
Dunton got a 16.3 percent increase in salary last year but had his incentive bonus cut by 72.1 percent, according to the filing.
Dunton took home $960,000 in salary, compared with $825,000 in 2006. His cash incentive bonus dropped to $1.02 million, from $3.65 million, the company said.
The 2006 bonus included cash and a long-term incentive payout.
He also got a $5.3 million stock bonus and $853,000 in “other compensation.”
Dunton spent four years in the job before being replaced by Joseph “Jay” Brown, who returned to the job. Brown had stepped down in 2004.
MBIA shares dropped 74.5 percent last year and have dropped an additional 42.37 percent to yesterday’s close of $10.80.
This entry was posted
on Tuesday, March 18th, 2008 at 8:29 am by Allan Drury.
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