But that’s smart business. Had Doug gone to Pepsi, he’d have had information that could have ruined Coca Cola. So you’re getting something for that money. This payout Mozilo’s getting is just to have someone on staff that speaks this language of mess that Countrywide is in. And also, they’re going to have a fall guy in case this can’t be fixed. I wanna know how you start and completely ruin a company and get country club dues paid in the end! That’s a great lawyer, he has. Clearly I’m working too hard.
On 1/14/08 1:41 PM, "Martin" <[EMAIL PROTECTED]> wrote: > > > > > Keith, this remind sme of the super-sweetheart deal that Doug Ivester, the guy > who used to be CEO of Coca-Cola, got when he reitred. Coke basically paid him > almost $2 million a year for five years, ostensibly to be available as an > advisor. In reality, it was payola, designed to keep him from working for any > other soft-drink company (rumors were rife that Pepsi wanted him for the same > job). > > [EMAIL PROTECTED] <mailto:KeithBJohnson%40comcast.net> wrote: > freakin' amazing! I'm really tripping on the fact that he basically gets 400K > a year just to be available for "part of each month"! > > -------------- Original message -------------- > From: "Tracey de Morsella (formerly Tracey L. Minor)" > Lavish Payout, Perks for Failed Mortgage CEO > http://abcnews.go.com/Business/MarketTalk/Story?id=4121306&page=1 > <http://abcnews.go.com/Business/MarketTalk/Story?id=4121306&page=1> > His Severance Package Includes Jet Use, Country Club Dues and a Hefty Payout > By DANIEL ARNALL > ABC NEWS Business Unit > > Jan. 11, 2008 — > > Angelo Mozilo, the co-founder and public face of troubled mortgage giant > Countrywide, is eligible for tens if not hundreds of millions in > compensation and perks on the sale of the company to Bank of America. > > During calendar 2006, the latest period available for review in > Securities and Exchange Commission filings, Mozilo took home $48.1 > million in compensation. An early analysis of SEC filings by the Los > Angeles Times suggests he could get upward of $115 million when he > leaves after the sale is complete, despite the fact that the company > tanked during the recent subprime mortgage crisis. > > In December, Countrywide reported a record number of foreclosures and > delinquencies in its loan portfolio. The value of shares has fallen more > than 84 percent since mid-May of last year. > > Bank of America today confirmed that Mozilo will stay on with the > company through a "transition period." Countrywide wouldn't comment on > Mozilo's pay. > > His long tenure with the firm he has been there since its beginning in > 1969 and extensive employment agreement gives him the right to a > significant payout when he leaves. > > Immediately upon a change in control, Mozilo would get $13.3 million in > accelerated vesting of stock grants, according to the terms of his 2004 > compensation agreement, included in the company's latest proxy statement. > > Should he leave the company after the firm's buyout, Mozilo would get a > one-time cash payment of $88 million. > > These numbers are presented in the proxy in the context of a > "hypothetical" change in control on Dec. 31, 2006. The date is necessary > since some of the value of the benefits is based on share price. The > company entered into a new employment agreement with Mozilo in 2007, > which the proxy statement says guarantees substantially the same > post-merger benefits. > > A senior Democratic lawmaker welcomed on Friday Bank of America's $4 > billion acquisition of Countrywide Financial Corp, but urged > Countrywide's chief executive to donate some of his millions of dollars > in pay to help subprime mortgage borrowers, Reuters reported. > > The deal could be a "positive development" in the subprime mortgage > crisis, said Barney Frank, chairman of the House Financial Services > Committee. > > Some of the perks to which Mozilo is entitled after a change in control, > according to the official filing: > > The company will retain Mozilo as a consultant. Mozilo is obligated to > make himself available for a specified period of time each month through > December 2011 and at the rate of $400,000 per year. > > He will also be entitled to receive other benefits, including office > space, secretarial support, use of the company's aircraft, financial > consulting services and payment of annual country club dues. > > For three years, continuing health, life insurance and financial > planning benefits for Mozilo and his beneficiaries. > > After those three years, health benefits for the lifetimes of Mozilo and > his spouse. > > A "gross-up payment" equal to the excise tax charged to him as a result > of his receipt of any of the above (with certain exceptions). > > All this is based on contractual obligations made with Mozilo when the > company was doing well. The terms of the sale to Bank of America might > have forced Mozilo to give up some of these benefits. > > [Non-text portions of this message have been removed] > > Yahoo! Groups Links > > "There is no reason Good can't triumph over Evil, if only angels will get > organized along the lines of the Mafia." -Kurt Vonnegut, "A Man Without A > Country" > > --------------------------------- > Be a better friend, newshound, and know-it-all with Yahoo! Mobile. Try it > now. > > [Non-text portions of this message have been removed] > > > [Non-text portions of this message have been removed]
