because it is heavy monetary loss and reduced production, loanDepot has Decreased fundraising ability It cut $1 billion, laid off thousands of employees, and exited the wholesale lending business. But that hasn’t stopped non-bank lenders from issuing generous bonds. salary increase to its top executives.
In documents submitted to Securities and Exchange Commission loanDepot revealed it last week. agreed to pay Chief Revenue Officer and Senior Executive Vice President Jeff Walsh’s base salary of $750,000 is above his 2021 base salary of $715,385. He is also eligible for an annual bonus of 200% of his base salary.
LoanDepot’s chief capital market officer, Jeff DerGurahian, is also eligible for a 150% annual bonus, according to SEC filings. His base salary has increased from $568,846 in 2021 to his $600,000.
The non-bank lender will offer Walsh and Dar Grahian a $1 million retention bonus if they remain with the company through the end of 2022 and a $1.5 million retention bonus if they remain with the company through December 31, 2023. provided.
Both executives have made millions since Loan Depot, the 7th largest lender in the United States. Listed during the mortgage boom. Walsh said he received a $1.5 million discretionary bonus in 2021, and last year’s total compensation he had $7.12 million. In 2020, he earned a total of $18.45 million in earnings. DerGurahian said that in 2021 he received a bonus of $900,000 and his total compensation for 2021 was $5.86 million. In 2020, he received $16.25 million in total compensation.
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of The Company’s 2022 Proxy Statement It also details the company’s employment agreement with Shay, which will pay him an annual base salary of $850,000 in 2022 and $350,000 from 2023 onwards. He is also eligible to receive an annual bonus targeting 250% of his base salary for 2022, given a maximum payout of 300% of his 2022 calendar year target, as determined by the Compensation Committee. increase.
LoanDepot did not immediately respond to a request for comment. In an email sent to employees on Tuesday, CEO Frank Martel said loanDepot has “temporarily suspended” his 401K bouts since October. The company has also consolidated and closed offices in Arizona, Miami and Nashville, as well as backyards in Orange County, California.
The remuneration disclosure comes amid a drastic cost-cutting effort by non-bank lenders, cutting thousands more than 4,000 jobs since the end of last year.
Over the past two months, loanDepot has reduced warehouse credit lines by a total of $1 billion, SEC filings show. The company said the decision was based on “current and projected mortgage originations.”
In August, after reporting a financial report of $223 million, loss In the second quarter, lenders made the following decisions Close wholesale channelOn the earnings call, CEO Frank Martel told analysts the company “does not seek market share.”
Earlier this month, loanDepot appointed Joseph Grassi as Chief Risk Officer. After spending his 20 years as Fannie Mae’s senior attorney, he freddie mac, celebrity mortgage, U.S. Department of Housing and Urban Development, Guaranteed rate When prospective mortgage.