Genworth to pay ex-CEO Fraizer $2.25 million lump sum

RICHMOND, Va., Mon May 14, 2012 – Life and mortgage insurer Genworth Financial Inc. will pay former Chief Executive Michael Fraizer a lump sum of $2.25 million as part of a separation agreement reached on Monday.

Fraizer, who had held the top post at the company since it was spun off from General Electric Co. in 2004, stepped down as CEO after the company’s weaker-than-expected results earlier this month.

The company also said in a regulatory filing that 400,000 of Fraizer’s previously vested and outstanding stock appreciation rights, with a base price of $2.46, and 433,334 SARs with a base price of $7.80, will be exercisable until June 29, 2013.

Investors have often been critical of the company for not doing enough to boost its share value, with hedge fund maven Steve Eisman even threatening a proxy war.

Analysts have said the change of guard would bolster investor confidence in regaining capital levels and that the company’s U.S. mortgage insurance unit’s improving results will help the stock.

Genworth has faced mounting losses at its Australian mortgage insurance unit, part of which it intends to float in an initial public offering.

The company has pushed back the date of the listing to early 2013 due to unfavorable market conditions.

The Australian unit’s listing would have freed up capital, which shareholders were hoping Genworth would use to buy back shares.

MF Global judge to examine insurance for ex-executives

NEW YORK – The U.S. judge overseeing MF Global’s bankruptcy plans a closer review before deciding whether any of an estimated $190 million of insurance coverage for former company executives should instead go to customers.

Opponents of the plan to cover former executives, including at least four customer groups, believe the funds should not go to people they hold responsible for the collapse of the futures brokerage. The $190 million includes at least $120 million covering the period surrounding the company’s demise.

MF Global Holdings Ltd, which was run by former New Jersey governor and U.S. senator Jon Corzine, filed for bankruptcy protection on Oct. 31.

U.S. Bankruptcy Judge Martin Glenn at a Thursday hearing in Manhattan also authorized the hiring of several law and consulting firms to assist Louis Freeh, MF Global’s bankruptcy trustee and a former FBI director, and James Giddens, the bankruptcy trustee for the MF Global Inc broker-dealer unit.

The judge nonetheless expressed “concern about the proliferation of professionals” involved in the parent’s bankruptcy case.

The $190 million would be reserved to pay legal and other costs for onetime executives of the brokerage.