Lordly Payout Awaits Sallie Mae Execs

RESTON, Va. – The proposed $25 billion takeover of Sallie Mae could bring a princely pay–cal it lordly–for the architect of the student loan giant, a payout of as much as $300 million. Sallie Mae Chairman Albert Lord, the man who engineered the privatization of the former government sponsored enterprise into the dominant force in the student loan market, stands to earn as much as $160 million on the $60-a-share offer, a 46% premium on the shares; as well another $160 million when he exercises more than 7.3 million options, according to documents filed with the Securities and Exchange Commission. Lord’s handpicked successor as CEO, Thomas Fitzpatrick stands to earn almost as much, an estimated $275 million, or so. That includes the premium on his 976,690 Sallie Mae shares and 3.6 million options, as well as a $10 million change of control without termination payment. Fitzpatrick earned $40 million last year, including $23.4 million through the exercise of otions and $16.6 million in compensation.