Countrywide Critics Slam Board’s Pay

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Two groups representing union pension funds turned their sights on Countrywide Financial Corp.’s directors Thursday, saying board members failed to curb what they called excessive compensation for Chairman and Chief Executive Angelo Mozilo, the Los Angeles Times reports.


One group — the American Federation of State, County and Municipal Employees — said Countrywide directors had become conflicted by their own “excessive pay” and stock options that had allowed five members of the board to cash out more than $20 million in stock gains over the last two years.


“Directors who are making as much as CEOs make at other companies may lose the perspective of shareholder advocate, and instead blur their self-interest with that of the executive,” said Gerald W. McEntee, president of the federation, which represents union pensions holding 3.5% of Calabasas-based mortgage lender Countrywide’s stock.


Separately, CtW Investment Group, which represents the pension funds for the Teamsters, United Farmworkers and other unions that hold Countrywide shares, also criticized the board for excessive compensation for its directors.


“Current and historic director pay is both unjustified and a likely source of the board’s passivity in the face of the company’s current crisis,” CtW Executive Director William Patterson wrote in a letter to Harley Snyder, Countrywide’s lead director.



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