1.12.2008

Annals of capitalism, extra pay for failure edition

New York Times:

"On Friday, The Los Angeles Times estimated that Mr. Mozilo’s severance pay could be worth roughly $115 million. That figure includes a $24 million lump sum pension payment and $3 million in compensation for stock options and stock grants. In the event of resigning or being fired, Mr. Mozilo’s contract with Countrywide also guarantees him a payout of three times his current base salary, plus a cash bonus equal to whatever is greater: his last bonus or the average of the previous two years’ bonuses.

In case you lost track of all those calculations and stipulations, that total is a tidy $87.9 million, The Times reported.

Given the well-publicized misery of subprime borrowers who have lost their homes, it’s not surprising that that generous figure drew some outraged reactions."
No idea why.

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