Schapiro Discloses Wealth
Thursday, January 29, 2009
The new head of the Securities and Exchange Commission, Mary Schapiro, has hundreds of thousands of dollars in money-market and mutual funds, large holdings in stocks, and is receiving $675,000 in deferred compensation from a company on whose board she sat for about 10 years.
Schapiro, a brokerage industry regulator, was chosen by President Obama to lead and revitalize the embattled agency at a time of severe financial crisis and shaken investor confidence. She was sworn in Tuesday.
Since 2006, Schapiro had been chief executive of the Financial Industry Regulatory Authority, the brokerage industry's self-policing organization.
Her financial disclosure report, made available yesterday, lists combined holdings of $2,000 to $30,000 in stock of General Electric and Starbucks, and $250,000 to $500,000 in stock of Duke Energy -- one of two companies of which she was a director.
Schapiro's report lists $675,033 in deferred compensation from Kraft Foods, the other company. It says she received the payout in cash before entering the government and that she is forfeiting her unvested stock grants from Kraft.
Schapiro was given an assessment by the SEC's ethics office and the federal Office of Government Ethics that her individual stock holdings do not require her to divest them, SEC spokesman John Nester said yesterday.
She isn't required to recuse herself from matters involving the industry sectors of the stocks she holds, but under the ethics agreement she will remove herself from matters involving any of the specific companies.
The exact value of Schapiro's assets couldn't be determined from the financial forms because they only require values to be provided in ranges.
She will earn $162,900 a year as head of the market watchdog agency.
Schapiro, 53, who also was an SEC commissioner under three presidents and chairwoman of the Commodity Futures Trading Commission, earned $2.75 million annually as FINRA chief executive, according to the disclosure report.