Monday, January 14, 2008

Mozilo After Countrywide

Now that it has been officially announced that Bank of America is acquiring Countrywide, the spotlight is on Mr. Angelo Mozilo again. Mozilo, Countrywide’s founder and CEO, is famous for his massive sales of company stock. He’s earned hundreds of millions of dollars since he became CEO in 1999 and is expected to get another hundred million in severance after the closing of the BofA deal sometime in Q3. Some sources value his severance package in tens of millions of dollars, which, while substantially smaller than the number above, definitely ensures Mr. Mozilo a happy retirement. One source said he was planning to retire in 2009, but with this new development he might be leaving the workforce a little earlier. I don’t think that makes much difference to him. Mozilo’s generous compensation, which includes use of the corporate jet, county-club membership and other perks, has often been criticized in the media. Executives at mortgage lenders like Countrywide are believed to have caused the current mortgage crisis by allowing predatory lending, fraud, and other unfair business practices. Well the man founded the company after all…

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