Advisory group calls for ousting of Countrywide CEO

Countrywide Financial Corp. (NYSE: CFC) CEO Angelo Mozilo's woes continue to mount, to the extent that woes can mount for someone who has sold hundreds of millions of dollars worth of stock in the past few years.

First, the SEC began an investigation of Mozilo's stock sales, then Senator Charles Schumer asked that the investigation be expanded to include the company. Now CtW Investment Group, a leading pension-fund advisory group, is calling for Mozilo's head.

The Wall Street Journal received a draft of the letter and quoted part of it (subscription required). CtW writes that Mozilo "has failed to provide leadership as the company attempts to navigate its way out of the current U.S. mortgage crisis. Indeed, Mr. Mozilo's decision to increase the frequency and magnitude of his stock sales has not only sent the wrong signal to Wall Street and investors, but brought increased regulatory scrutiny to the company at a time when it can least afford it."

CtW is exactly right. But Mozilo is a throwback to the glory days of the imperial CEO, and I doubt any well-reasoned argument from an advisory firm will persuade him to give up his throne. A huge severance package? Perhaps.