I wrote in this space two weeks ago about the enormous payout that outgoing Countrywide CEO Angelo Mozilo was expecting for his dedicated efforts to run his company into the ground:
Let's assume that was you. How much of a bonus would you expect to get on your way out the door?
If your answer was "I'd be lucky if I made it out the door without employees and investors chasing me down with torches and pitchforks", you're out of touch with the life of the modern CEO. Because Angelo Mozilo, CEO of Countrywide Financial Services, is anticipating a stunning $115 million payout if Bank of America is successful in buying out his struggling company...
The guy's contract guarantees him an enormous cash payment even if he is fired. Which is generally what happens to CEOs who fly their companies into the side of a mountain.
Well, I can only assume that Mozilo reads this blog, because today he announced that he's going to forgo some parts of that extremely generous severance package:
Countrywide Financial Corp. CEO Angelo Mozilo, under fire over the size of his potential payout from the proposed sale of his troubled mortgage company, says he is forfeiting some $37.5 million in severance pay, fees and perks he was scheduled to receive upon his retirement.
Mozilo, however, will still retain retirement benefits and deferred compensation that he has already earned, Countrywide said in a statement being released Monday.
In addition to $36.4 million cash severance payments, Mozilo also walked away from $400,000 per year he was to be paid under an agreement to serve as a consultant to the company following his retirement, and perks including the use of a private airplane, the company said.
Don't cry for Mozilo, though; he's still holding on to other components of the package whose value will run into the tens of millions:
He'll leave with a pension plan and supplemental executive retirement plan that totaled $23.8 million as of December 2006, according to the most recent proxy statement the company filed with the Securities and Exchange Commission.
Mozilo also accrued about $20.6 million in deferred compensation, according to the filing.
The executive has sold shares of the company's stock since last year but still has shares worth around $5.8 million.