25 April 2008

So Much For Performance Pay

Countrywide Financial was one of the leading caused of the subprime mortgage crisis that has thrust the United States and the world economy into a recession. So, the man responsible for this dreadful economic mistake has been punished horribly by the markets for his inastute business judgment, right? Of course not.

Countrywide Financial's CEO Angelo Mazilo made $121.5 million in 2007 from exercising stock options under a Rule 10b5-1 plan. He also received $22.1 million in compensation -- $1.9 million in salary, $20 million in stock and option awards, no bonus. Countrywide, in contrast, lost $704 million, and its shares declined 79%.

From here.

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