The Conscience of Angelo Mozilo
Angelo Mozilo’s behavior concerning his severance package from embattled mortgage lender Countrywide (CFC) reminds me of a toddler caught stealing candy from a store. Somehow Mozilo thinks that if he puts back the money, nothing bad will happen to him.
If you recall, Mozilo was slated to receive $115 million in cash and stock plus perks after selling the troubled lender to Bank of America (BAC). The outcry of the largess in the face of the credit crisis prompted The House Committee on Oversight and Government Reform to “invite” the CEO to testify about - tens of millions of dollars in severance payments and other compensation. I request that you be prepared to provide your perspective on this reported pay package.
I suppose Mozilo thinks that if his pay package disappears,
there will be nothing to testify about. The question of his sudden stock sales all last year in the face of mounting company losses seem like an interesting topic to me and I’d love to hear what the House committee thinks about it.
Reports today also suggest Mozilo still stands to receive other accrued retirement benefits outside of the severance package.
Mozilo, however, will still retain retirement benefits and deferred compensation that he has already earned, Countrywide said in a statement released Monday.
The CEO isn’t giving up his $36 million without a fight. He’s blaming the media for overstating his compensation package. It wasn’t $115 million, it was only $36 million - He stressed in Monday’s press release that media estimates of his severance package have been overstated.
It was a nice try, but I think Mozilo will still be in trouble if he doesn’t show up in Washington D.C. on February 7th.