Chief of losing lender earns a fortune
Saturday, April 26, 2008
COUNTRYWIDE Financial Corp chief executive Angelo Mozilo realised US$121.5 million from exercising stock options and was awarded US$22.1 million of compensation in 2007, a year when the US housing slump pummeled the nation's largest mortgage lender.
The awards came in a year Countrywide lost US$704 million, its first loss in more than 30 years, and saw its shares decline 79 per cent.
Mozilo, long criticised for his compensation packages, realised the option gains by acquiring and selling 4.92 million shares under a prearranged trading plan, Countrywide said in a Thursday filing with the US Securities and Exchange Commission.
Mozilo's compensation fell 49 per cent from a reported US$43 million in 2006. The bulk of his 2007 compensation was from US$20 million of stock and option awards made early in 2007, before borrower defaults soared and liquidity grew tight.
Countrywide, based in Calabasas, California, drew down an US$11.5 billion credit line, curtailed a wide variety of riskier home loans, and cut about 11,000 jobs as the housing slump deepened.
It agreed in January 2008 to be acquired by Bank of America Corp, the second-largest US bank, for US$4 billion.
According to the filing, in 2007 Mozilo was awarded a US$1.9 million salary, the US$20 million of stock and option awards, and US$176,513 of other compensation. He received no bonus.
Some of Mozilo's awards related to previous years, or may never vest. Other compensation included US$44,454 for personal use of company aircraft, US$8,581 for country club fees, US$23,755 for automobile use, and other items. Compensation is based on salary, bonus, the value of stock options and other awards granted during the year, and incentives and perks. Reuters
The awards came in a year Countrywide lost US$704 million, its first loss in more than 30 years, and saw its shares decline 79 per cent.
Mozilo, long criticised for his compensation packages, realised the option gains by acquiring and selling 4.92 million shares under a prearranged trading plan, Countrywide said in a Thursday filing with the US Securities and Exchange Commission.
Mozilo's compensation fell 49 per cent from a reported US$43 million in 2006. The bulk of his 2007 compensation was from US$20 million of stock and option awards made early in 2007, before borrower defaults soared and liquidity grew tight.
Countrywide, based in Calabasas, California, drew down an US$11.5 billion credit line, curtailed a wide variety of riskier home loans, and cut about 11,000 jobs as the housing slump deepened.
It agreed in January 2008 to be acquired by Bank of America Corp, the second-largest US bank, for US$4 billion.
According to the filing, in 2007 Mozilo was awarded a US$1.9 million salary, the US$20 million of stock and option awards, and US$176,513 of other compensation. He received no bonus.
Some of Mozilo's awards related to previous years, or may never vest. Other compensation included US$44,454 for personal use of company aircraft, US$8,581 for country club fees, US$23,755 for automobile use, and other items. Compensation is based on salary, bonus, the value of stock options and other awards granted during the year, and incentives and perks. Reuters
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