Mozilo Rewarded For Running A Company Into The Ground
At about this time, most employees are finding out what their raise is going to be for the year. Typically, this raise is based on the employee’s performance for the past year. Some will be rewarded for the good work they performed. While others won’t get anything because their performance wasn’t deserving of anything. Fair enough!
Too bad the same standard wasn’t used for outgoing CEOs. Once again, we see a CEO being rewarded for running a company into the ground. This time it’s Angelo Mozilo of Countrywide Financial Corp. Reports indicate that he’ll take home a cool $83 million in severance pay when Bank of America closes the deal. Here’s why -
Mozilo is entitled to three times his annual salary and three times his average bonus over the past two years in the event of a takeover, the lender’s December 2006 regulatory filings show. –Bloomberg
This even after the company’s stock lost 79% of its value last year.
What do you think? Should a CEO be highly compensated even if they run a company into the ground?
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Just Squeaking By is a blog about my personal finances and my quest to get them in order. Read more about Just Squeaking By
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Not one red cent. Thousands of drones made the money, are now fired and he gets paid for doing what exactly? How is this even a variant of capitalism?