Bull loses an arm, unfortunately.
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Ahhhh, to be the tanned one!
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Mozilo to get $110 million severance in Bank of America buyout
Posted Jan 11th 2008 11:45AM by Zac Bissonnette
Filed under: Bank of America (BAC), Countrywide Financial (CFC)
You would think that having sold millions of shares at inflated prices would have been enough for Angelo Mozilo, who is now dumping Countrywide Financial (NYSE: CFC) on Bank of America (NYSE: BAC) for less than a fifth of what the company traded at earlier this year.
The company has taken huge writedowns on ill-advised subprime loans, even as Mozilo sold about $140 million worth of stock during late 2006 and 2007. But according to the Los Angeles Times, “If he engineers a sale of battered Countrywide Financial to Bank of America, Countrywide CEO Angelo Mozilo stands to walk away with a severance package worth more than $110 million.”
The Times adds that Mozilo and wife will get health benefits for life, three years of life and financial planning help, and “tax gross-up payments” to compensate for any penalties he has to pay on a package that the IRS will likely consider grossly excessive.
This is an absolute parody of corporate governance. It’s hard to imagine anyone less entitled to any severance than Mr. Mozilo. The irony is that by selling to Bank of America at a depressed price, Mozilo reaps a windfall far larger than he likely could have earned through continued employment with the company. And he won’t have to work any more!
I just watched that movie last night(for the 8th time). It never gets old.
Thank you for warning us, once again, through the medium of blood and gore.
Ahh, children, I remember the Spartans well.
But the justice meted out to the arrogant Persian will be nothing compared to the swift “Pythonic Black Knighting” approaching yonder Omega Dawg.
LA Times about Mozillo
The newspaper reports tonight that in his contract agreement, which extended the 69-year-old’s employment contract through 2009, Mozilo was guaranteed three times his base salary, plus a cash payment equal to three times the greater of his average bonus or the incentive bonus paid the previous year. Net value: $87.8 million.
In addition, Mozilo has two pensions that his severance agreement 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.
There is more. The Times reports Mozilo would receive continuing health benefits for life for himself and his spouse, three years of life and financial planning benefits, and “tax-gross-up payments” to compensate him for any penalties he’d have to pay for receiving payments the IRS might consider excessive.
But notice how, at the end, the bears all perish. Granted, they die rather heroically, but still…
So keep that in mind, all you perma-, temp-, and undecido-bears, as you sacrifice your neighbors to Shorticus.