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

At its upcoming shareholders meeting, Annaly Capital Management 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!


The article Annaly Capital: There's More to Its Management Proposal Than Meets the Eye originally appeared on Fool.com.

John Maxfield has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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