The New York Times-20080129-Countrywide Chief Forgoes --36-37-5 Million In Exit Pay

Return to: The_New_York_Times-20080129

Countrywide Chief Forgoes $37.5 Million In Exit Pay

Full Text (238  words)

The chief executive of the Countrywide Financial Corporation, Angelo R. Mozilo, will voluntarily give up $37.5 million in severance and consulting pay in connection with the proposed takeover by the Bank of America Corporation.

Countrywide, the mortgage lender and loan service, said Monday that Mr. Mozilo's stock and employee equity awards would be treated the same as that of other shareholders and employees if the $4.2 billion sale goes through.

Mr. Mozilo has sold millions of dollars in Countrywide shares in the last couple of years. According to a lawsuit filed by New York's city and state comptrollers and their pension funds accusing Countrywide of defrauding investors, Mr. Mozilo sold almost $450 million in stock from April 2004 to August 2007.

In a statement Monday, Mr. Mozilo said, My primary focus today, as it has been for the past 40 years, is to do what is in the best interests of Countrywide's employees, customers and shareholders.

Under the deal, Mr. Mozilo would be entitled to $36.4 million in cash severance pay and $400,000 a year in consulting fees, as well as the use of a private airplane, Countrywide said. Mr. Mozilo held 0.24 percent of Countrywide's shares as of Oct. 12, 2007, according to data compiled by Bloomberg News. That stake is worth about $8.2 million.

Countrywide shares declined 7 cents Monday, to $5.95. The shares have lost about 86 percent of their value in the last year.