Countrywide’s Mozilo Gives Up $37.5 Million; 'American Morning' Still Complains

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By Jeff Poor (Bio | Archive)
January 28, 2008 - 17:07 ET
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In a class-warfare driven media, where the "haves" are often pitted against "have-nots," you would think an outgoing CEO giving up $37.5 million in pay would be celebrated.

Not quite. CNN's "American Morning" didn't think it was quite good enough when Countrywide Financial's Angelo Mozilo forfeited $37.5 million in severance pay because he said he felt it was the "right thing to do."

"It's another disconnect with Main Street," "American Morning" anchor Kiran Chetry said Jan. 28, 2008. "Because most people don't get rewarded when things go wrong at their job, and this is what we see with these CEOs."

"Over and over and over again," CNN's personal finance editor Gerri Willis added.

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But it isn't quite as simple as Chetry stated. Mozilo co-founded Countrywide (NYSE:CFC) 40 years ago and grew it to the nation's largest mortgage lender. On January 11, Bank of America Corp. (NYSE:BAC) announced it agreed to acquire Countrywide for roughly $4 billion in stock and Mozilo was to step down as part of the deal.

Willis also echoed Chetry's sentiment about CEO pay and used other CEOs as examples. However, it wasn't clear what Willis and Chetry thought these CEOs should do with compensation they rightfully earned.

"[L]et's take a look at other CEOs, as a matter of fact, who have gone through the same thing," Willis said. "Poor performance, they get rewarded. They forego severance. People like Stanley O'Neal who ran Merrill Lynch (NYSE:MER) walks away with $161.5 million. Charles Prince, similar story here, Citigroup (NYSE:C) taking big losses - he walks away with $29.5 million. All three of these fellows forego severance, but still walk away with lots of money and I think it's a big question for folks out there - pay for performance? Maybe not."

"Yeah, it doesn't seem fair," Chetry added.

As Washington Post columnist Allan Sloan pointed out when Home Depot CEO Bob Nardelli was fired early in 2007, "The time to have the debate over CEO compensation isn't when the CEO is fired. It's when he's hired." That's a point too often missed when the media exhibit consternation over previously negotiated pay packages.


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I wonder how many of the

January 28, 2008 - 17:24 ET by USA4freedom

I wonder how many of the employees give back their money at CNN/NYT/ MSMBC/CBS.etc.. for finishing last EVERY WEEK.

 

 

 

These are the boys of Pointe du Hoc. Ronald Reagan- 40th Anniversary of D-Day

That actually fits the Democrat politicians better.

January 28, 2008 - 20:39 ET by kg

"Because most people don't get rewarded when things go wrong at their job, and this is what we see with these CEOs"

That actually fits the Democrat politicians better.

CEO Compensation

January 28, 2008 - 17:30 ET by Bourbeau

We have to stop expecting the media to handle complex subjects, like CEO compensation, rationally.  What makes their story line are the numbers without the accompanying details.  Let's not expect them to undersand what the CEO contract terms are; lets not expect them to undertand that CEOs don't pay themselves; lets not expect them to know that a CEO's compensation is made up of different pieces and effectively all become part of the "severance" package, regardless of how or when earned (e.g. stock options, deferred income).  And lastly, and maybe it's not fair, but let's say it anyway.  Each of these blowhards probably has a contract (just like a CEO); and in that contract there are terms covering their salary and severance (that most people would love to have); but let's not expect those morons to underscore that they themselves participate in the same pay practices as a CEO (the ones they are criticizing), just on a lower pay scale.

BB that's the problem they

January 28, 2008 - 17:37 ET by NavyBuckeye

BB that's the problem they really have with it....their compensation is far far less. It's not that the CEO is going to get that much rather it is the fact these media retards don't get as much when they get let go.....remember they have the hard job of finding the victim in everything they report. It's hard work when there really arn't any victims to find.  It's not fair they have to rattle thier brains and bring morality to the sheeple and these CEO's land their jobs based on luck and get paid by they magical money fairy. The CEO's didn't work their way to the top....they lucked themselves there.

If everyone that claimed to be victim on a daily baisis donated a dollar to the ending of the deficit, it would be irradicated rather quickly.

Oh really? Who is the CEO is

January 28, 2008 - 21:45 ET by Evil Capitalist

Oh really? Who is the CEO is Verizon? Where did he start?

Thats not an issue - CEOs

January 28, 2008 - 18:37 ET by Evil Capitalist

Thats not an issue - CEOs should make tons of money. Only a delusional dumocrat could possibly ever think that CEO that is responsible for the company should be compensated only a few times higher than a janitor - especially if the company pays thousands of janitors.

The issue is that this specific company and this specific CEO lied as late as past November about the state of the company.

I don't Care

January 28, 2008 - 17:33 ET by ShaftBigScore

His $37 million goes back to Countrywide.....oops I mean Bank of America, why does anyone care?  This is not a story.

I favor the Civil Rights Act of 1964 and it must be enforced at gunpoint if necessary. President Ronald Reagan

This should teach you never

January 28, 2008 - 18:46 ET by mostlymoderate

This should teach you never to give in.  Mozilo would have been smarter to take the severance pay and then give to charity.  

40 years means nothing, I guess

January 28, 2008 - 18:48 ET by nkviking75

Countrywide may have problems now, but the man founded the company and served it for 40 years. No doubt he had a nice chunk of stock as well. He also gave back a tidy sum, trying to do "the right thing", when he wasn't obligated to do so.

Obviously Mozilo should have committed hari kiri at a televised press conference.

When you put the clowns in charge, don't be surprised when a circus breaks out.

Jack Welch

January 28, 2008 - 21:27 ET by zoro7957

.......retired from G.E with quite a lucrative pension, and the media Howled. However, if Mr. Welch would have been given just one tenth of one percent of the profit G.E turned  during his tenure, it would have been in the BILLIONS. Imagine the non stop railing by the msm over that.

Jack Welsh never lied about

January 28, 2008 - 21:38 ET by Evil Capitalist

Jack Welsh never lied about state of GE while creating "additional" plan for "diversifying" his portfolio.

CEO compensation is up to

January 28, 2008 - 21:37 ET by R D Helm

CEO compensation is up to the owners of the cororation, not mindless media twits like Kiran Chetry.

And if I had been Mozilo, I would have kept the money.

None are so hopelessly enslaved as those who falsely believe they are free. -J.W. von Goethe