More cause and effect at First Marblehead…

images-8thumbnail.jpegWhen we last footnoted First Marblehead (FMD) back in mid-November, the stock was trading at over $30 a share. Five weeks later, it had fallen 65%.

Now, word comes in the form of this 8-K that First Marblehead’s two most senior executives — CEO Jack Kopnisky and Chairman Peter Tarr — are feeling simpatico with some of the company’s investors and have asked for a 25% pay cut effective Feb. 1, when their salaries will drop to $750K for the rest of this year.

Granted, real parity would have been a 65% cut. Still, considering how few top executives voluntarily ask for a cut in pay, even when the stock sinks on their watch, this move certainly seems worthy of a gold star.

UPDATE: Due to some technical problems, there will be no post on Monday Feb. 11. We’ll be back tomorrow.