The Masters of the Universe really have the game rigged. They can be given 10s of millions for FAILURE. There doesn't seem to be a penalty for making losing bets if one is a top executive. That encourages shortsighted risk-taking and that's definitely a moral hazard.
Mozilo could reap $115 million
The Countrywide CEO's potential pay if his company is acquired rankles critics.
By Kathy M. Kristof, Los Angeles Times Staff Writer January 11, 2008
Countrywide Financial Corp. founder Angelo Mozilo, one of the nation's highest-paid chief executives, stands to reap $115 million in severance-related pay if his troubled company is acquired by Bank of America Corp., regulatory filings show.
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.Other executives, including Home Depot Inc.'s jettisoned CEO, Robert Nardelli, have garnered bigger going-away packages. But critics say Mozilo's arrangement is especially nettlesome given the losses that Countrywide investors have suffered in the last year. Company shares rallied Thursday to $7.75, up $2.63, but that's still down 82% from their high last year.
Friday, January 11, 2008
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