Annaly Capital: There's More to Its Management Proposal Than Meets the Eye

At its upcoming shareholders meeting, Annaly Capital Management (NYSE: NLY  ) is asking its investors to approve a measure that outsources its management to a company owned by Annaly's current executives. To address any concern that the structure would create a misalignment of shareholder and management interests, Annaly has proposed requiring that its five most senior executive officers own an amount of stock equal to at least 6 times their 2012 base salary, which represents an aggregate ownership of $38.7 million.

In the video below, Motley Fool contributor John Maxfield discusses why there may be more to this story than meets the eye.

There's no question Annaly Capital's double-digit dividend is eye-catching. But can investors count on that payout sticking around? With the Federal Reserve keeping interest rates at historically low levels, Annaly has had to scramble to defend its bottom line. In The Motley Fool's premium research report on Annaly, senior analysts Ilan Moscovitz and Matt Koppenheffer uncover the key challenges the company faces and divulge three reasons investors may consider buying it. Simply click here now to claim your copy today!

Read/Post Comments (7) | Recommend This Article (4)

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  • Report this Comment On April 04, 2013, at 11:11 AM, rbreier wrote:

    HMMMM would this be the same management companythat has done such a wonderful job managing CIM??? relatives of a current senior executive member of NLY.

  • Report this Comment On April 04, 2013, at 4:49 PM, 2newstocks wrote:


    "Cui bono?"


  • Report this Comment On April 04, 2013, at 8:24 PM, rustyruby wrote:


  • Report this Comment On April 06, 2013, at 12:27 AM, CharDAt wrote:

    Absolutely am voting no. Even after decades investing I am still at times shocked at the cojones of managers and how they treat owners.

  • Report this Comment On April 06, 2013, at 1:46 AM, jonkai3 wrote:

    The Market tells you volumes more than a blogger from MF. If John someday either went long shares, or shorted shares, he would come to grips with what really is going on here, rather than being a blogger who has no idea of what he spouts. because the Market is telling us what is really going on.

    open your eyes if you want to see... about 10% + 1/4 of a 12% dividend to the upside ago..

    There is a reason NLY has returned about 800% including dividend reinvestment over the last 15 years,

    if this is "fleecing" shareholders, please fleece the shareholders more NLY.

    Management makes money by raising the actual value of the company through book value, their vast majority of pay, and their stock worth is directly dependent on that movement, as a matter of fact it is directly tied.

    a Shareholder, (as opposed to John who is not) would rightly hope management doubles their vast majority of pay through bonus and stock, because the only way they can is by doubling the shareholder's net worth of the company. if any bells and whistles are going off there. then one should do some research on why the management pay has gotten so large. and coincidently why shareholders have doubled their money and doubled it again, and again.

  • Report this Comment On April 15, 2013, at 1:11 PM, MD20 wrote:

    As a Shareholder I will be voting NO

  • Report this Comment On April 16, 2013, at 8:31 AM, krah wrote:

    There might be a problem,

    Making the proposal management has another thought giving them more money, eh?

    If voting gives NO result, management feel unhappy. the question remains: are they competent to continue in their present jobs. In my mind the result will similarly be NO for their continuation.

    If voting gives YES result, it will be seen how much money they can collect and how much for the shareholders. Obviously risky business.

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9/26/2016 4:03 PM
NLY $10.92 Up +0.13 +1.20%
Annaly Capital Man… CAPS Rating: ****