Over the past several years the employees of FNF have weathered pay-cuts, years of no increases, fore-gone bonuses, and down-sizing. All on the premise that the economy and down-turn of the housing market - core to FNF's business model - was needed so that the shareholders could still find it viable to invest in the company. How does Foley accept one dime of a pay increase when his loyal employees struggle to make ends meet in tough econmic times. I'm a firm beliver of capitalism, but it's examples such as these that makes it tough to defend.
Bill Foley, who is chairman of both Fidelity companies said the Fidelity National Financial incentives were a reward for quickly integrating the title insurance operations it acquired from LandAmerica Financial Group in December 2008. Ironically, the executives were rewarded extra pay for cutting out costs in the merged operations. But Foley said the cuts were necessary to make the companies profitable after the merger.
"It was important for us to get our arms around synergies quickly," he said.
Foley received a total 2009 package of about $21.5 million from Fidelity National Information and $18.3 million from Fidelity National Financial, both about triple the amounts he received in 2008.
"Those bonuses were earned. It was a lot of hard work," he said
Guess we'll find out if the salaries were "earned" after we get the verdict from the market. For the time being, the stock is really acting well and the dividend increase is certainly welcome and being well received. Too early to tell but those kind of salaries in a company whose stock has, to this point, done rather poorly, are a cause for some concern. Verdict is still out.
a lot of complain when one quarter result does not meet the expectation. Remember a company can not change macro economy condition. FNF increases dividends showing it is confident to pay more in the future. At current price the yield is 4.7%, good enough for long-term holders.
Let's see. 600 people fired in the 1st Q of 2010. The $18.9 M in net income in the 1Q came mainly from the $26M in profit from the bond sale. Title operations lost $ in the 1Q.
But ... real estate will always come back and FNF will remain on top of the industry.