SEATTLE--(BUSINESS WIRE)--June 2, 2008--Washington Mutual
(NYSE:WM) today announced several new measures to further strengthen
WaMu's corporate governance as the company's management team and Board
of Directors work to return the company to profitability.
Effective July 1, independent director Stephen E. Frank will
assume the role of Board Chair while Kerry Killinger will continue to
lead the company as Chief Executive Officer and serve as a Director.
The Board also adopted a majority voting standard and made several
changes to the composition and leadership of certain of its Board
"The actions taken today by the Board are the result of a
deliberate review of how best to enhance WaMu's corporate governance
policies and practices. They also reflect the Board's commitment to
listening to feedback from our shareholders," said Frank. "My fellow
directors and I look forward to working with Kerry and his management
team as they return WaMu to profitability."
Frank, 66, has served on WaMu's Board of Directors since 1997,
most recently as the company's Lead Independent Director. He is the
retired chairman, president and CEO of Southern California Edison.
"We're very fortunate to have in Steve Frank a Board Chair who has
broad business experience and a deep knowledge of our company," said
Killinger. "These actions underscore the Board's longstanding
commitment to good corporate governance and my personal commitment to
improving the company's financial performance and delivering value to
Killinger added, "These steps are just a few among many we are
taking this year to make this a positive turning point for WaMu. In
addition to these actions, we are, of course, aggressively
implementing our plans for operational and financial recovery --
including maintaining ample capital and a high level of liquidity,
significantly reducing our operating expenses, and continuing to grow
our profitable, core retail bank."
Under WaMu's new majority voting standard, in uncontested director
elections, nominees must receive a majority of votes cast to be
The Board also made the following changes to the composition and
leadership of certain of its Board committees:
-- The Board appointed Orin C. Smith, retired Starbucks CEO, to
serve as Chair of the Finance Committee. Smith has been a
Director since 2005 and will continue to serve on the Board's
Audit and Governance Committees. Recently elected director
David Bonderman will serve as Vice Chair of the Finance
Committee, in addition to being a member of the Corporate
Development committee. Bonderman is Managing Director of the
global private investment firm TPG.
-- The Board appointed Thomas C. Leppert, Dallas Mayor and former
chairman and CEO of The Turner Corporation, to serve as Chair
of the Governance Committee. Leppert has served as a member of
the Governance Committee and will continue to serve as a
member of the Audit and Corporate Relations Committees.
Leppert joined WaMu's Board in 2005.
-- The Board appointed Regina T. Montoya to serve as Chair of the
Corporate Relations committee. She will also continue in her
role as a member of the Finance Committee. Montoya, CEO of
Dallas-based New America Alliance, joined WaMu's Board in
In addition, the company has launched a search for individuals
with extensive financial services and strong leadership experience to
further fortify WaMu's Board of Directors as new independent
WaMu, through its subsidiaries, is one of the nation's leading
consumer and small business banks. At March 31, 2008, WaMu and its
subsidiaries had assets of $319.67 billion. The company has a history
dating back to 1889 and its subsidiary banks currently operate
approximately 2,500 consumer and small business banking stores
throughout the nation. WaMu's financial reports and news releases are
available at www.wamu.com/ir.
CONTACT: WaMu Media
Libby Hutchinson, 206-500-2770
WaMu Investor Relations
Alan Magleby, 206-500-4148 (Seattle)
212-702-6955 (New York)