Mozilo Caves in to Protect His Image?

by Florida's #1 Mortgage Planner on January 28, 2008

Mozilo Caves in on Golden Parachute Mozilo has been targeted by virtually everyone these days.  As the leader of Countrywide, he kept misinforming the public and his own employees saying things were better than they appeared, meanwhile selling of stock and finally selling Countrywide to Bank of America (B of A).  The stock selloff even prompted the SEC to investigate. 

Add to that the announcement that Mozilo would walk away with a golden parachute worth over $100 million potentially, and you can see how his image has been marred, making his tan appear to be more "tarnish" than baking in the sun too long.

Well, in a MarketWatch article this morning, it was announced that Mozilo was giving up $37.5 million.  He is also giving up his $400,000 annual consulting fee and use of the private jet.  Don’t you just feel sorry for him?

"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," Mozilo said in a statement.

"I believe this decision is the right thing to do as Countrywide works toward the successful completion of the merger with Bank of America."

He will keep his keep retirement benefits and deferred compensation that he has earned in full.  So, do you think he is caving in, trying to save face or not?

{ 1 comment… read it below or add one }

Sean Purcell January 30, 2008 at 9:38 am

Don’t consider it caving in really, just recognizing reality. As much as I agree with you regarding his recent shenanigans, we have to give him his due for building such a successful company. I have said before (usually when I am holding Countrywide up to the pillory) that they arguably did more to help the American homeowner than any other company.

It is too bad they got mixed up with all those neg-ams, which I believe to be the real cause of their impending doom and the writing on the wall that the insiders, at least, are reading.

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