Mozilo the Magnificent

Posted by: Chris Palmeri on October 25, 2006

Angelo Mozilo started in the mortgage business as a delivery boy and built Countrywide Financial into the largest home lender in the land. He’s never been shy about compensating himself well.
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Today’s Los Angeles Times has an article about how he’ll be paid $10 million over the next three years, the amount he would have made as a pension in retirement, because he decided to stay on at the company a little longer. That’s $10 million on top of his regular high pay, double dipping if you will and shocking at a time when the company is laying off 2,500 people. But Mozilo at least delivers something to shareholders. Yesterday, despite the fact that the company reported earnings that were down 40%, worse than analysts had expected—Mozilo also announced a $2 billion share repurchase program, the first in the company’s 37-year history. Mozilo candidly told investors Countrywide would be “treading water” in 2007, but indicated he thought the worst was over for the housing bust. Wall Street applauded his straightforwardness and Countrywide’s stock jumped 6%.

Reader Comments

gordo nyc

October 26, 2006 5:58 PM

While his firm buys back outstanding stock, keep an eye on his insider trades selling off options, the value of which is bouyed up by the repurchase of company stock. Hey, it's his company. Whatever.

Callie

November 11, 2006 11:06 AM

I think anyone who works for Countrywide MUST be a loser, unemployable elsewhere..... They came looking to hire my husband, who has a successful career as a mortgage banker, and is always being courted by many banks and mortgage companies to work for them: while other companies are dangling upwards of 60% commission along with monthly draws, Countrywide offered just 4% - FOUR. LOLnLOL ROFL at them......After this article I can see who IS getting the rest of the commissions......
So the only people who are going to accept their offer are neophytes or those who cannot get jobs elsewhere. I feel sorry for the consumers going there.

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About

BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.

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