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

By John Maxfield - Apr 4, 2013 at 10:31AM

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Investors in Annaly Capital Management would be wise to take a close look at the issues on the ballot at the popular mortgage REITs upcoming shareholders meeting.

At its upcoming shareholders meeting, Annaly Capital Management (NLY 0.15%) 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.

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