Investors mull Annaly executive exits


After slipping nearly 3% overnight in wake of the news of the departures of its COO and co-CIO from the firm's external manager, Annaly (NLY -0.9%) is off modestly in early action.

A bull on the stock, Tsachy Mishal says the departures are understandable given Annaly's weak performance, and one could make the argument it's news to buy on as these poor-performing execs are gone.

David Schawel: "This news shouldn't be a surprise - their portfolio has sadly been a disaster since Farrell passed away."

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Comments (16)
  • B172068
    , contributor
    Comments (42) | Send Message
     
    I'm sure they'll turn up at AGNC's HQ.
    14 Feb 2014, 10:31 AM Reply Like
  • pemdas1
    , contributor
    Comments (263) | Send Message
     
    Looking at the SEC reports, these guys were making $6-7 million a year each, before options. My guess is they are more likely to turn up at a villa on the riviera.
    14 Feb 2014, 10:49 AM Reply Like
  • stuyoung
    , contributor
    Comments (267) | Send Message
     
    I believe they are both 38 years old.....if I was 38 with their kind of money....retire in style!
    14 Feb 2014, 11:28 AM Reply Like
  • sandyroy25
    , contributor
    Comments (23) | Send Message
     
    How do ineffective exec's get paid that much while the sometimes brighter secretary down the hall is earning $40,000 and doing no harm? Is it because they can?
    14 Feb 2014, 12:18 PM Reply Like
  • not so dumb blond
    , contributor
    Comments (250) | Send Message
     
    Loved your comment!
    14 Feb 2014, 05:12 PM Reply Like
  • acesfull
    , contributor
    Comments (452) | Send Message
     
    Two guys in their thirties making &6 to $7 million a year? And for a period of time that NLY was getting clobbered? And no one mentioned this? Shareholders had no idea? I can only conclude that their moms or maybe an uncle were on the B.O.D. or they had something nasty on the CEO. What else? But I have to give them credit. If they made $7M/yr for three or four years, then they're home free. Break out the champagne. Congratulations are in order.
    14 Feb 2014, 12:25 PM Reply Like
  • Brad Johnson
    , contributor
    Comments (92) | Send Message
     
    I sold about half my positions in NLY when I heard all the departures. I hope I'm wrong, but usually when many high level people leave all at once, it reeks of a sinking ship. I thought it was prudent to trim my positions.

     

    I agree, that compensation is out of control. I don't want any sort of government oversight with regard to salaries, just better stewardship of the companies I invest in. No 30-something year old employee should be making a $6-$7 million dollar salary, especially when the share price has cratered.
    14 Feb 2014, 12:31 PM Reply Like
  • The Long Tail of Finance
    , contributor
    Comments (1748) | Send Message
     
    >>No 30-something year old employee should be making a $6-$7 million...

     

    Certainly not that kind of money running a simple leveraged spread income model. Doesn't take big brains to run that. We're talking mREITS here, not equity REITS!
    14 Feb 2014, 01:04 PM Reply Like
  • AggGrow
    , contributor
    Comments (210) | Send Message
     
    @Tsachy - Maybe if it were one person, but two??? Very unlikely. More likely there's a management problem.

     

    @Schawel - Mike setup this whole thing and brought on ALL the actors. He had charisma, but his loss doesn't explain everything.
    14 Feb 2014, 12:40 PM Reply Like
  • Ray Merola
    , contributor
    Comments (6876) | Send Message
     
    Were the departures part of "counseling" to leave or were they voluntary? This would be data points of value.
    14 Feb 2014, 01:31 PM Reply Like
  • emanigol
    , contributor
    Comments (4) | Send Message
     
    The compensation is out of control and did not appear to match the company performance. I kept hanging on to my NLY position and hoped for things turning around. First there were all those seemingly assuring news about insider buying, but when I saw the news after market closing I had an uneasy sinking feeling. Would like to know more about the background of their decisions.
    14 Feb 2014, 03:35 PM Reply Like
  • SLONomad
    , contributor
    Comments (7) | Send Message
     
    With all these departures, it brings to mind the words of that timeless song "The Weight" by the Band. Who is going to "stay and keep Anna Lee company?"
    14 Feb 2014, 03:47 PM Reply Like
  • not so dumb blond
    , contributor
    Comments (250) | Send Message
     
    I see I'm not the only fan of The Band. Good analogy.
    14 Feb 2014, 05:16 PM Reply Like
  • Ray Merola
    , contributor
    Comments (6876) | Send Message
     
    Agree. I could find nothing of substance today about the reason behind the departures. Just talk and speculation. Will continue to look around.
    14 Feb 2014, 04:43 PM Reply Like
  • joabe17
    , contributor
    Comments (198) | Send Message
     
    Annaly had a terrible 2013, could these departures simply be a gentleman's way of getting fired.
    14 Feb 2014, 04:55 PM Reply Like
  • Uain53
    , contributor
    Comments (1808) | Send Message
     
    I once worked for a small company that had about $4.5 million in sales. Some one came in with a $800K of equity with the stipulation that a person of their choosing became an EVP. The poor guy was in way over his head, and it took 2 1/2 yrs to finally ease him out.

     

    I wonder how long the above mentioned pikers were in their positions before thay were.... eased out..
    14 Feb 2014, 11:19 PM Reply Like
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