What a joke ==> Countrywide's Mozilo Entitled To $115 Mln Severance -Report
Dow Jones Newswires - January 11, 2008 8:41 AM ET
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DOW JONES NEWSWIRES
Countrywide Financial Corp. (CFC) founder Angelo Mozilo is entitled to $115 million in severance-related pay if his troubled company is acquired by Bank of America Corp. (BAC), The Los Angeles Times, citing regulatory filings, reported Friday.
The newspaper said free rides on the company jet are also included in Mozilo's departure deal, and the company will pick up his country club bills until 2011.
Neither Mozilo nor Countrywide officials returned calls for comment, The L.A. Times said.
Bank of America Friday agreed to buy Countrywide in a $4 billion all-stock deal. The L.A. Times said if the takeover is completed, Mozilo could potentially stay on with the company. But compensation experts say he could probably make more money by leaving, since Bank of America is unlikely to pay Mozilo more than its own chief executive, Kenneth Lewis.
Lewis earned $27.9 million in 2007, according to regulatory filings. Mozilo earned $48.1 million last year, the L.A. Times reported.
If Mozilo is fired or resigns voluntarily, his employment contract guarantees him three times his base salary, plus a cash payment equal to three times the amount of whichever is greater: his average bonus over the last two years or his bonus from the previous year, according to the L.A. Times, which it said would add up to $87.9 million.
In addition, Mozilo has two pensions that his severance pact gives him the right to receive as a lump sum upon his departure. Those pensions were worth $24 million as of December 2006, the last time the company was required to report their value.
Finally, Mozilo would be eligible for accelerated payment of stock options and stock grants if the buyout goes through. Those are worth at least $3 million at current market prices, estimated Richard Ferlauto, director of pension and benefits policy at the American Federation of State, County and Municipal Employees.
Altogether, according to the L.A. Times, the severance package is potentially worth $115 million. |
