Countrywide Compensation Proposal Fails

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Shareholders of Countrywide Financial Corp. rejected a proposal that would have given them a nonbinding say on compensation for top executives at the nation’s biggest mortgage lender.


The measure, considered at the company’s annual meeting Wednesday, attracted 32 percent of the voting shares, with nearly 60 percent against the proposal. Countrywide recommended last week that investors vote down the initiative, proposed by the American Federation of State, County and Municipal Employees Pension Plan.


Shareholders have submitted “say on pay” proposals at more than 60 companies this year, with proposals passing at Verizon Communications Inc., Motorola Inc. and Blockbuster Inc. A similar proposal was turned down at Northrop Grumman Corp. last month.


“There is absolutely no evidence to document that say-on-pay enhances shareholder value,” said Chief Executive Angelo Mozilo at the meeting, adding the idea was “an inoperable, irrelevant concept” that would hinder the company’s ability to keep and recruit talent.


Mozilo’s compensation, which totaled $48.1 million last year not considering the value of cashed in stock options and vested grants, was much of the impetus behind the proposal. His aggregate compensation including the options and grants totaled $127 million.


Shares in Countrywide closed down 20 cents to $37.90 in Wednesday trading on the New York Stock Exchange.

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