Mary Schapiro, Whose Pay Was Benchmarked To CEOs Of Investment Banks And The NYSE, Received A Farewell Payment From FINRA Of $8,985,334.02

Tyler Durden's picture

From the Amerivet Demand Committee report. Presented without much commentary (highlighting ours):

Upon her departure from FINRA, Ms. Schapiro did not receive a $25 million gift. She rather received $8,985,334.02, most of which consisted of the lump sum payment of the retirement benefits that had accrued in her favor during her thirteen year tenure with FINRA. Most of the remainder consisted of incentive compensation for 2008 to which she was contractually entitled. After taking into consideration all forms of compensation, including base salary, incentive compensation and retirement benefits, the total compensation paid to or accrued in favor of Ms. Schapiro during the relevant time period was not more than competitive with the comparable groups.


The Committee has determined that the compensation decisions made by the Compensation Committee and Board were made in good faith to ensure that FINRA paid its senior executives no more than reasonably required to enable FINRA to hire and retain the quality of executives needed to carry out effectively FINRA's regulatory mission. Based upon the facts summarized above, and the advice of counsel summarized herein, the Committee concludes that FINRA does not have viable claims to recover any compensation paid to FINRA's senior executives, including Ms. Schapiro, during the years 2007-2009. The Committee recommends that no such claims be asserted.

Here are the people who permitted and encouraged Schapiro's multi-million compensation over the 2006-2009 period:

And some more brilliance from the committee following the Finra fund's catastrophic performance after 2008:

After the market decline in 2008, the Compensation Committee discussed the degree to which the decline should be taken into account in determining senior management's compensation. The Compensation Committee concluded that senior management had not been rewarded as richly as their counterparts at comparable organizations during the preceding market increase, and should not therefore be penalized as severely during the downturn. Nevertheless, in light of poor economic conditions and the performance of FINRA's investments, Ms. Schapiro recommended, and the Compensation Committee agreed, that 2009 base salaries for senior management should be frozen at 2008 levels and that incentive compensation for 2008 should be 25% less than that paid for 2007.

Yet just before this we read this:

Total direct compensation for senior management fell between the 25th and 50th percentiles primarily because FINRA, unlike many of the comparable organizations for the comperisons, did not offer longer-term incentive compensation. Instead, FINRA placed increased emphasis on base salary.

In essence, Mary Schapiro made sure that the biggest component of her benefits package would be the same as during the market peak year, despite a 20%+ drop in Finra' assets.

And here is the stunner:

As comparables for the compensation of FINRA's chief executive officer and chief financial officer, Mercer used investment banking and brokerage firms with between $250 million and $5.6 billion of revenue because the pay level of CEOs and CFOs are generally related to firm size. Data for those comparable was collected from the proxy statements and other public filings of the comparison group companies and for the NYSE's chief executive officer.

In other words: Mary Schapiro, the head of the primary, and most worthless, SRO of the country, which allowed Madoff to operate for decades, was getting paid in the same comp bracket as THE NYSE CEO AND HEADS OF INVESTMENT BANKS!

And here are the details:

Mercer concluded that total direct compensation for FINRA's CEO was "very consistent among the two groups examined at both the median and 25th percentile levels." Ms. Schpairo's total cash compensation was $2.5 million, compared with the median of $2.1 million and 75th percentile of $3.3 million.

The remainder is just as nauseating. You can read the full Report of the Amerivet DEmand Committee of the Financial Industry Regulatory Authority at this link.

Artwork courtesy of William Banzai:


h/t William Banzai

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No One's picture

Payment for Services to be Rendered. Nice.


bonddude's picture

yes clearly HUSH $$$.

The epitome of a hypocrite... to say the least.

Voodoo Economics's picture

Don't jus go after her.  MERCER is the paid whore who is one of only a few "consultants" that know how to play the game and CYA all these non-profit and government officials.

Rodent Freikorps's picture

How dare you presume to pass judgement on one of the aristocracy.

You get above yourself, sir.

masterinchancery's picture

The whole piece is an outrage--members of the ruling class, however idiotic, should never have to accept such chump change.

BrosMacManus's picture

Frankly, I'm surprised this even saw the light of day, even under discovery. At least FINRA was/is a private corporation, so she was only enriching herself from member dues. The SEC is stocked with lifers these days, and to bring in new blood they have to compete with the private sector, where until recently a rising tide lifted all boats. Now that the tide's gone out, I'm sure the Chairwoman's union contract keeps her moored at the high water mark. FWIW, social security COLAs frozen for 2011, second year in a row; the only two times since automatic inflation adjustments were enacted in 1975.

Austerity is just for the little people. Let them eat cake, indeed.


MsCreant's picture

That's really forked up William.

Fork off dude.

Fork her to hell.

Forkn' A.

Hail Mary, Motherforker, full of mace.

Cognitive Dissonance's picture

Fork over the dough or I'll stay even longer.

FEDbuster's picture

Gives new meaning to "stick a fork in it, it's done!".

masterinchancery's picture

Let them eat cake, she'll keep the dough.

aheady's picture

Forked up beyond all recognition.

Miles Kendig's picture

Save the freakin' forkin' for Chez Shalom .. And remember, why bitch about how much the bartender is gettin' tipped when it is all about pay for performance

- Love Forking Rahm

williambanzai7's picture

Don't forget forked tongue (Heck Kowie Tribe)

MsCreant's picture

How the Heck Kowie?


williambanzai7's picture

I have this whole SEC F Troop routine somewhere. Will have to did it out. They are located on F Street, and the guy they fired to be the COO of enforcement has the samename as the actor who played O'Rourke. Hence F Troop

tamboo's picture

the pitchfork and 60's tv stuff bought to mind 'green acres'

but the mind really boggles with the possibilities;

lost in space? outer limits? gomer pyle? land of the giants?

banzai's place in the sun arriveth, woohoo!

TomJoad's picture

Jump! You Forkers!



(Nice to see you MsC!)

MsCreant's picture

VERY nice to see you TomJoad.

Are you on a research vessel still? I don't mean to get you in trouble here, but I do hope you are working at something interesting and doing well!

the not so mighty maximiza's picture

That will buy you allot of girdles.

FEDbuster's picture

Bulletproof vests are more appropriate.

Miles Kendig's picture

same same  since it is getting near time for lace up corsets to make a come back as a stealthy Dragon Skin product.

Minion's picture

I saw some forum posts by a man who survived the Argentina hyperinflation.  One of his most spirited recommendations was to get a bullet proof vest while you still can.  Also he said a pistol is far more useful than a rifle in the real world when you have to go to work, go to the store, etc.  Funny how liberal states seem to attract the criminals........ opportunists always search for the best odds.....

MsCreant's picture

Think Trannie and we will get to the bottom of this...

tip e. canoe's picture

"My, what a big fork you have, Miss."

Miles Kendig's picture

I had thought that you were pointing that gun at a male.  Now I am not so sure...  I wonder if Mary wears a Fedora

Rodent Freikorps's picture

Oops, seems they sold the Dragon Skin armor.

Someone is well prepared now.

Miles Kendig's picture

There is Something About Mary.  Perhaps the fedora & dragon skin corset go together.

MsCreant's picture

I do believe we are all on the same page now. 

Not that I wish to oppress trannies in any way by comparing them to Mary (werd out to all self respecting drag kings and drag queens, no dis meant by this). She is less convincing as a woman than most, ya gotta admit it. Drag-on skin corset might help, but that face, man...

Miles Kendig's picture

Under pressure.  Damn.  This is the best I could do on a Mary short

Miles Kendig's picture

Hmm.  Gotta ponder that one.  Perhaps it's because I always pictured Lloyd more as Gigi's grandma .. in modern 5"ers

Reminds me of that classic Howard Beale pic of Timmay (as Dorothy Provine - kickin with the chiffon scarf and the blonde hair) and Larry (as Ethel Merman) with Ben (as Milton Berle) driving.... 

At least Lloyd could compete with Larry while I wonder about Mary.

Sokhmate's picture

Are Turing bombs related to the Halting Problem?

LeftCoastRefugee's picture

Expect to see this on the front page of all the MSM any second now.....any second now........any second now

AccreditedEYE's picture

Plenty of time to plan out multi-million pay packages and read porn all day. Our tax dollars at work....

Cognitive Dissonance's picture

The remainder is just as nauseating. You can read the full Report of the Amerivet DEmand Committee of the Financial Industry Regulatory Authority at this link.

Thank you Tyler. Just in time since my Parakeet's cage needs the paper changed. He likes to read while he's taking a crap. Don't we all?

His Dudeness's picture

I liked to take a crap with the window open, but one day my parakeet seized the opportunity and flew away...

How did you come to own this bird again CD? Does it also suffer from tourettes?


Cognitive Dissonance's picture

Sorry. That bird you just flashed me flew over my head.