In an apparent effort to stay afloat, senior executives of a nonprime mortgage lender are looking at significantly reducing their compensation.
ECC Capital Corp. announced today that some of its executive management team has "offered to take significant reductions in their compensation."
The latest effort to cut costs follows last month's announcement that the Irvine, Calif.-based company is considering eliminating its real estate investment trust status and a February announcement that it would cancel first quarter dividends.
Today's announcement said the company's chairman and cofounder, Steven Holder, and president and cofounder, Shabi Asghar "have volunteered to work without salary or bonus for the next twelve months."
ECC's chief financial officer and chief administrative officer have reportedly agreed to a 20 percent salary reduction. In addition, both will join the chief production officer in returning some previously-granted stock options, the statement said.
In addition to base compensation reductions, the mortgage banker said half of discretionary bonuses for all executives will be contingent on returning to profitability.
A secondary marketing executive resigned but will stay on as a consultant while his responsibilities are transferred to existing executives, according to the announcement.
"In light of present conditions facing our industry and company, we are continuing to move ahead with our restructuring efforts, which we believe will not only reduce costs but improve quality and productivity," Holder said in the statement.