Something is very wrong with this picture.
Countrywide loses over $700 million dollars in 2007.
The CEO, Angelo Mozilo , receives an 80% pay cut.
That makes *some* sense.
With that, he was only making close to a $1 million a month in base pay.
But hey- there's some stock options to cash in!
... another $10 million a month to ease the pain.
Ask a Countrywide employee how they feel about this.
Or don't.
It's really too cruel to bring up.
Let's see what the SEC thinks about it, though.
They're looking into the timing of his stock sales.
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picture "Countrywide Enron" courtesy of The Consumerist
Patty & Scott- I can see that it takes top talent to run a multi-billion dollar industry. And... rewards come to those who perform well. However, this sort of gain makes no sense at all to me.
Jean- Maybe someone should introduce legislation? :-)
Kathy- It's possible that there is a law- if he was using personal knowledge to time his withdrawl. Otherwise it's up to the shareholders.
Cindy- It's one of those silly things I can't figure out.
Makes no sense at all but is not uncommon. It's the attorneys.... they draw up documents that 'protect' CEO's, etc., from being responsible.
Candace- Single? hmmm... I'll call and ask him. [time lapse delay.] They said he's busy right now. Want me to keep trying? :-)
Eric- For as long as I can remember there has been a big debate about CEO compensation. And... as long as the boards are willing to offer these huge contracts and golden parachutes we'll continue to have these aberrations I guess.
Susie- For many of the CEO's to be, they're reaizing now more than ever that they'll need their exit strategy handled before taking the job. The amazing thing is that there was enough value in Countrywide stock for him to earn such a large amount. Theoretically the CEO shouldn't do very well when the stock tanks... but Countrywide approached the "too big to fail" zone- where investors saw a lot of upside... enabling him to enrich himself, in spite of the huge losses... at least that's my opinion.
Chuck, I think it's really wrong... actually kind of sick. How can he sleep at night?
They very well should look into timing of stock sales. I can't even imagine that kind of money.
Debbie- perhaps he owns an elaborate sleep enhancing chamber? :-)
Penny- well... insider trading is very serious... ask Martha Stewart (and she wasn't even an insider at ImClone).
pottyparty being thrown with their investments.Kent- It's in their hands... one encouraging note- CEOs tend to get voted out with greater frequency these days.
Candace- I'll see what I can do. :-)