There is an article in WSJ about how well the Directors of Countrywide are paid. Their compansation in 2006 ranged from $344,000 - 477K plus $71K which equals 410K to 540K! That is more than double the median which was $204K.
Note to Stock Holders: WAKE UP.
The article talks about how Angelo Mozilo put his credibility on line by suggesting a modest profit in the current quarter. I don't know what credibility he has left after dumping the Countrywide stock like there is no tomorrow. And his reason for selling more than $132 million? Education for his grand children! I know CPI under reports the inflation numbers, but $132 Million for Education?
After the last conference call, I heard many of the analyst say the management knows what they are doing and this is a great company. I wonder if they still think that because the stock price is back $14.35. It was as high as $17 after the conference call. It looks like another pump and dump operation from the analysts. Pump the stock while their institution dumps the stock.
Countrywide rewards board members so well that "at some point, you cross the line between paying for services provided and a very lucrative thing where board members aren't going to challenge management," says Mark Reilly, a partner at 3C, Compensation Consulting Consortium. "I do think they have crossed the line."
"If you have been to board meetings with the CEO for 14, 15, 16 years, then your ability to act entirely independently is becoming compromised," Mr. Hodgson says. "It's too cozy a relationship."
No comments:
Post a Comment