Former Merrill Lynch & Co. (NYSE: MER) Chief Executive Stan O'Neal, former Citigroup Inc. (NYSE: C) CEO Chuck Prince and former Countrywide Financial Corp. (NYSE: CFC) Angelo Moziilo are due to testify before the U.S. Congress next week about executive pay. No, ladies and gentlemen, I am not making this up.The poster children of outrageous executive compensation will appear Thursday before the House Committee on Oversight and Reform, which recently delved into the touchy issue of whether Roger Clemens had performance-enhancing drugs injected into his rear end. The three should have plenty to talk about as CNN/Money.com notes.
This should be a doozy. Committee Chairman Henry Waxman (D-CA), who has taken on numerous special interest groups including Big Tobacco, will have his hands full as his committee examines the link between executive pay and the mortgage crisis. He better have an extra-large gavel handy because these witnesses didn't think they were accountable to shareholders and sure don't think they need to explain themselves to a bunch of politicians.Upon his departure from Citigroup in November, Prince left with approximately $68 million, while O'Neal collected about $161 million after he stepped down in October.
Countrywide's Mozilo reportedly stood to collect a windfall of $115 million dollars after his firm agreed in January to a yet-to-be completed $4 billion sale to Bank of America. But after facing heavy criticism from lawmakers, Mozilo said he would forfeit $37.5 million in payments tied to the deal.
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Reader Comments (Page 1 of 1)
2-22-2008 @ 6:41PM
Mark Wisby said...
It is about time. Way the go Henry Waxman and the Democratics in Congress. These clowns have been getting away with Highway Robbery for way too many years. They sit on each others boards and vote themselves HUGE pay and bonuses even though their companies are going under.
I have NO trouble with performance pay, but when things are back they shouldn't get paid.
2-23-2008 @ 8:37AM
Mike Ruen said...
There is no question but that greed completely dominates the board rooms of American business.
Shareholders have the ability to be heard if they would take the time to vote their proxies.
Government should never be allowed to get directly involved. Its another freedom gone.
3-02-2008 @ 3:20PM
campgal said...
WAXMAN IS A BUM! INVESTIGATE HIM! !