CALABASAS, Calif., Jan. 28 /PRNewswire/ -- Countrywide Financial
Corporation (NYSE: CFC) Chairman and Chief Executive Officer Angelo R.
Mozilo announced today that, in connection with the proposed merger between
Countrywide and Bank of America, he has decided to voluntarily relinquish
his rights to approximately $37.5 million in cash severance payments,
post-closing consulting fees and continued perquisites, provided under his
employment agreement with Countrywide and the related consulting
arrangement. Mr. Mozilo will not receive any cash payments in the merger or
upon any related termination of employment other than amounts that he has
already earned in full, such as retirement benefits and deferred
compensation. These amounts would all have become payable in the ordinary
course upon his retirement regardless of the Bank of America merger. Mr.
Mozilo remains a substantial stockholder and an employee of Countrywide and
his common stock and employee equity awards will be treated in the merger
in the same manner as those of all other shareholders and employees.
"My primary focus today -- as it has been for the past 40 years -- is
to do what is in the best interests of Countrywide's employees, customers
and shareholders," Mr. Mozilo said. "I believe this decision is the right
thing to do as Countrywide works toward the successful completion of the
merger with Bank of America."
In recent days, there have been numerous public statements regarding
Mr. Mozilo's severance pay package, which some third parties have
over-estimated to be as high as $115 million. Pursuant to his employment
and consulting arrangements with Countrywide, in connection with the merger
and a subsequent termination of employment, Mr. Mozilo would be entitled to
$36.4 million in cash severance pay and $400,000 per year in consulting
fees, as well as private airplane use and other perquisites. These are the
amounts and benefits he will be forfeiting.
Countrywide Financial
Founded in 1969, Countrywide Financial Corporation (NYSE: CFC) is a
diversified financial services provider and a member of the S&P 500, Forbes
2000 and Fortune 500. Through its family of companies, Countrywide
originates, purchases, securitizes, sells, and services residential and
commercial loans; provides loan closing services such as credit reports,
appraisals and flood determinations; offers banking services which include
depository and home loan products; conducts fixed income securities
underwriting and trading activities; provides property, life and casualty
insurance; and manages a captive mortgage reinsurance company. For more
information about the Countrywide, visit Countrywide's website at
http://www.countrywide.com.
SOURCE Countrywide Financial Corporation
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Related links:
http://www.countrywide.com/
CONTACT:
media, 1-800-796-8448,
pressroom@countrywide.com, or investors, Investor Relations,
+1-818-225-3550, both of Countrywide Financial Corporation
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