Not very illuminating…
Luminent Mortgage Capital (LUM), a mortgage REIT hit hard by the current credit crunch, saw its stock soar by as much as 34% earlier this week after it announced that it had repaid $1 billion on its warehouse credit lines and cut 15 positions.
So where was the press release accompanying this late Friday 8-K spelling out the new retention bonuses for CEO Trez Moore and CFO Chris Zyda?
On August 31, 2007, we entered into retention agreements with S. Trezevant Moore, Jr., our President and Chief Executive Officer, and Christopher J. Zyda, our Senior Vice President and Chief Financial Officer. These agreements provide for the payment of retention bonuses of $1,000,000 to Mr. Moore and $750,000 to Mr. Zyda and are in lieu of any other bonus compensation in respect of 2007. The purpose of these bonuses is to incentivize Mr. Moore and Mr. Zyda to remain in our employ through December 31, 2007 in light of the unprecedented conditions affecting the mortgage industry since August 3, 2007 and for their efforts in managing the Company during this period.
Clearly, there’s not much clarity at Luminent.