Millions lose homes,CEOgets lavish perks

[forestal]

Not an uncommon theme these days: fail miserably, and get a big reward.

Of course this only happens if you're rich or powerful.

ABC News: Millions Lose Homes, Lender CEO Gets $88M

Lavish Payout, Perks for Failed Mortgage CEO

His Severance Package Includes Jet Use, Country Club Dues and a Hefty Payout

By DANIEL ARNALL
ABC NEWS Business Unit

Jan. 11, 2008 —

Angelo Mozilo, the co-founder and public face of troubled mortgage giant Countrywide, is eligible for tens if not hundreds of millions in compensation and perks on the sale of the company to Bank of America.
During calendar 2006, the latest period available for review in Securities and Exchange Commission filings, Mozilo took home $48.1 million in compensation. An early analysis of SEC filings by the Los Angeles Times suggests he could get upward of $115 million when he leaves after the sale is complete, despite the fact that the company tanked during the recent subprime mortgage crisis.
In December, Countrywide reported a record number of foreclosures and delinquencies in its loan portfolio. The value of shares has fallen more than 84 percent since mid-May of last year.
Bank of America today confirmed that Mozilo will stay on with the company through a "transition period." Countrywide wouldn't comment on Mozilo's pay.
His long tenure with the firm  he has been there since its beginning in 1969  and extensive employment agreement gives him the right to a significant payout when he leaves.
Immediately upon a change in control, Mozilo would get $13.3 million in accelerated vesting of stock grants, according to the terms of his 2004 compensation agreement, included in the company's latest proxy statement.
Should he leave the company after the firm's buyout, Mozilo would get a one-time cash payment of $88 million.
​

 

[cwo_ghwebb]

Envy will get you nowhere in a hurry. People make dumb decisions every day, that's one of the reasons so many are in foreclosure at the moment.

Good CEOs have proven track records before they are hired and are in such demand that they pretty much can dictate their compensation packages, in this case negotiated in 1969. Not like he was hired last year, busted and gets that golden parachute.

I've told you several times before, get an education and read! Lots!

 

[czygvtwkr]

Did you ever screw up at work?

Did you still get paid?

Ever have someone that makes less than you do something that you couldn't?

CEO's get paid what they do because they usually make the company money, if they don't they are fired. No different that a football coach that looses too much, they still get paid.

Whining about how much money someone makes is pointless unless you are the one making them look good and getting paid less.

 

[Wickedwrench]

Good CEOs have proven track records before they are hired and are in such demand that they pretty much can dictate their compensation packages, in this case negotiated in 1969. Not like he was hired last year, busted and gets that golden parachute.

I've told you several times before, get an education and read! Lots!

Ever had any experience with Jacques Nasser? He's a perfect example of a loser that jumped with a golden parachute strapped to his pampered behind.

 

[chernmax]

That must really suck for you seeming how you fail miserably, and get now rewards.

 

[forestal]

You're such a chump. You, and the rest of us taxpayers, pay for this guy's failures and still consider him a great CEO...

Taxpayers to help foot BofA's $4.1 billion Countrywide bill - Jan. 11, 2008

NEW YORK (Fortune) -- Guess who's helping Bank of America pay for its $4.1 billion purchase of Countrywide Financial? Answer: The taxpayers of the United States.
That's because Bank of America (BAC, Fortune 500), which is solidly profitable, will be able to use some of Countrywide's losses to offset its own taxable income. The tax break could total about half a billion dollars over the first five years, according to an estimate by tax guru Robert Willens, who left Lehman Brothers Friday after a 20-year run and will be in business as Robert Willens LLC starting next week. The losses could be worth considerably more to Bank of America starting in the sixth year, depending on how big Countrywide's losses are when Bank of America formally acquires it.
At this point, of course, no one knows how much in losses Countrywide has run up since the junk mortgage market began souring and defaults accelerated. Countrywide (CFC, Fortune 500) itself probably doesn't know. But it seems almost certain to ultimately be in the billions.
In tax circles, Bank of America is famous for its 1988 purchase of the failed FirstRepublic Bank of Dallas, which was being auctioned off by federal regulators. Bank of America, then known as NCNB Corp., the parent of North Carolina National Bank, discovered a way to structure the deal to save $1 billion of taxes, using a convoluted strategy that none of the other bidders knew about. That allowed NCNB to outbid its rivals for the bank, and still come out way ahead.
​

Envy will get you nowhere in a hurry. People make dumb decisions every day, that's one of the reasons so many are in foreclosure at the moment.

Good CEOs have proven track records before they are hired and are in such demand that they pretty much can dictate their compensation packages, in this case negotiated in 1969. Not like he was hired last year, busted and gets that golden parachute.

I've told you several times before, get an education and read! Lots!

 

[RadioPatrol]

thats how the system works, Business have losses they get tax breaks

 

[cwo_ghwebb]

You're such a chump. You, and the rest of us taxpayers, pay for this guy's failures and still consider him a great CEO...

Get your head outta Mao's Little Red Book for a second. The failure of the company IS this dude's fault. Bad decisions on the part of the company AND the dumbazz folks who took out the subprime mortgages.

However, he made millions for the company of the term of his tenure which was longer than you've been an adult (assuming you're an adult presently).

He didn't negotiate his compensation package last year, fail miserably his entire career and now gets a bailout. Jeepers, wake up to reality!

I also get frustrated with CEOs that negotiate huge compensation packages, fail miserably after one year and now get a bailout.

I also get frustrated with government programs that suck up taxpayer money, have never worked to solve a problem, will never work to solve the problem and yet, it's an entitlement, so it will never disappear.

Spend your energy on something you can change. Your envy and angst over those that have more material things than you is immature.