CtW Investment Group, which represents the pension funds for the Teamsters, United Farmworkers and other unions that hold Countrywide shares, also criticized the board for excessive compensation for its directors.
"Current and historic director pay is both unjustified and a likely source of the board's passivity in the face of the company's current crisis," CtW Executive Director William Patterson wrote in a letter to Harley Snyder, Countrywide's lead director.The likelihood of the credit crisis continuing will only result in increased pressure on both Mozilo and the board. Stay tuned and keep a close eye on moves surrounding the firm and its top executives.
The letter says Snyder bears "central responsibility for Countrywide's egregious compensation."
"Your excessive compensation, together with your aggressive divestment of your own Countrywide stock at the peak of the housing bubble, militates powerfully against any inclination you might have to lead your fellow independent directors or hold Mr. Mozilo accountable," Patterson wrote.
New York Times