You would think that having sold millions of shares at inflated prices would have been enough for Angelo Mozilo, who is now dumping Countrywide Financial (NYSE: CFC) on Bank of America (NYSE: BAC) for less than a fifth of what the company traded at earlier this year.
The company has taken huge writedowns on ill-advised subprime loans, even as Mozilo sold about $140 million worth of stock during late 2006 and 2007. But according to the Los Angeles Times, "If he engineers a sale of battered Countrywide Financial to Bank of America, Countrywide CEO Angelo Mozilo stands to walk away with a severance package worth more than $110 million."
The Times adds that Mozilo and wife will get health benefits for life, three years of life and financial planning help, and "tax gross-up payments" to compensate for any penalties he has to pay on a package that the IRS will likely consider grossly excessive.
This is an absolute parody of corporate governance. It's hard to imagine anyone less entitled to any severance than Mr. Mozilo. The irony is that by selling to Bank of America at a depressed price, Mozilo reaps a windfall far larger than he likely could have earned through continued employment with the company. And he won't have to work any more!
On the bright side, he'll have more time to work on that wonderful tan, though it appears that he's already been spending time doing that as the company has slid to the brink of bankruptcy
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Reader Comments (Page 1 of 1)
1-11-2008 @ 1:13PM
billp31 said...
Mr. Mo doeasn't deserve anything at all.
1-11-2008 @ 4:20PM
Mark said...
How utterly ridiculous that someone would walk away from a near bankrupt company with that kind of money while thousands and thousands of mortgage holders are facing foreclosure or worse. Poor judgment and lack of information provided by the mortgage companies led many believe they could afford a home, while failing to properly explain the reality of what happens when rates rise. All the mortgage companies saw was the fees and money today, not looking at the consequences 3 to 5 years down the road. Greed at it's best! Shame on the perpetrators.
1-13-2008 @ 9:26PM
Melvin said...
Steve Wynn gave away Mirage and walked away a billionaire at shareholder expense. I never heard anyone reply to that fiasco, so why make such a big fuss here. They're both crooks....so what??
1-13-2008 @ 12:29AM
james said...
Hopefully he will be tarred and feathered when an investication is carry out. He deserves prison for selling his stock with insider knowledge being OBVIOUSLY obtained. Perhaps he'll go to jail and forfeit ALL his fortune and his family can go on the streets and seek compassion from charitable people. Learning about cause and effect is a great lesson for the undeserving pirates of corporate America.
1-13-2008 @ 12:49PM
Dave Reinermann said...
Jesus! $110 million for severace...that bastard only gave me 2 weeks severance when I got laid off in December! I was a loyal Countrywide employee!
1-13-2008 @ 4:48PM
Tom said...
CW/s mgmt had been rated a 0 by those in the know.......how right they were.
A tanning bed was also included in the deal...orange dude
1-13-2008 @ 9:32PM
Melvin said...
I don't understand your request for me to confirm my comment. You have no box to respond to.