Countrywide CEO Shamed Into Forefeiting $37.5 Million Severance Pay

Wall Street Journal:

Angelo Mozilo, chairman and chief executive officer of Countrywide Financial Corp., is giving up $37.5 million of severance pay, fees and benefits in the face of pressure from politicians who have berated him for continuing to collect large sums from the mortgage lender even as millions of Americans face the threat of foreclosure.

In a statement released late last night, Countrywide said the 69-year-old Mr. Mozilo will forfeit severance pay, fees and perks that he was to have received upon his retirement, according to the Associated Press. Mr. Mozilo is expected to step down when Bank of America Corp. completes its planned $4 billion acquisition of the Calabasas, Calif., mortgage lender. The sale is due to be completed in the third quarter, though some investors say it may fall through if Countrywide's business continues to deteriorate. (See related article.)

Giving up severance pay won't entirely shield Mr. Mozilo, who has become the public face of the mortgage crisis as the CEO of the nation's largest lender and a frequent guest on CNBC. Sen. Hillary Clinton of New York recently called his pay package "outrageous," and Sen. Charles Schumer, New York's other senator, urged Mr. Mozilo to donate part of his pay to services that counsel distressed mortgage borrowers.

Read the whole story: Wall Street Journal

Comments

[atlantajoe]

Maybe the pols should look in the mirror next, they have run the country into the ground by using tax money to buy votes. The bridge to nowhere or the proposed earmark for the Woodstock museum are good examples. After the pols pat themselves on the back for this guy giving up money he legally earned they will most likely vote themselves a raise.

[loki]

Oh poor baby..

[jerrypenguin]

Interesting story... It looks as if the media has tossed the grunts another Martha Stewart.

"His more than $400 million in estimated gains from pay and stock sales in the last few years dwarfs the compensation of any other C.E.O. of a company that has been in the heart of the subprime storm, from home builders to Wall Street. Giving up $37.5 million doesn't sound quite as magnanimous in comparison."

Source: http://www.portfolio.com/
Jan 28 2008 1:50PM EST
No Severance Cash, No Plane, but Respect?

[themodernleader]

A short while ago this CEO would have grabbed the money and ran. Why the conversion? There is a radical shift taking place in our economic, political values. Otherwise Mr. Mozilo would have gone the way of heretofore predatory captains of corporations.
There is an ideological change from selfishness to altruism, from self-centeredness to group consideration, from self-interest to a public interest.
This shift towards civic responsibility is a first step towards national redemption and renewal.

[Weathermaker]

Wasn't robing a criminal offense?

[Ginzaman]

He was forced to give it up as he goddamn well should be.

[booker52]

You can be sure this guy will not be hurting after he leaves Countrywide. But it's still a shame that what he did isn't considered a crime. Should be!!! I say anyone who pushed subprime loans, interest only loans, etc should be charged with a crime and do time. Lending money to people who have bad credit and doing creative financing has hurt those of us with good credit.

[mmckinl]

Now He's only worth a couple hundred million ...

[BPCentrisAmerican]

American CEOs can be shamed? I thought failure is what they get payed to do.

[dhfsfc]

Let me guess. He traded it for immunity from law suits after his retirement. Sounds like a pretty cheap price to pay.

[SubparDude]

:
Bet he deducts it against his stock profits.
:

[TitaniumAvatar]

No Shame...Fear maybe, but no shame.

[sparkandy]

Now if this just starts a trend and all the uber greedy CEOs have to give up a few mil....

[cheneypuke]

Did EVERYONE miss the real story ?

"From 2004 through 2007, Mr. Mozilo sold about $414 million of Countrywide shares"

which cost HIM nothing . . .

A real genuine Corporate PIG . . ..

[HereNow]

Now that he has said it, he doesnt have to actually forfeit it and will not when the time comes.