Stockholders Clamor for New Countrywide CEO
Major primary and second mortgage lender Countrywide is receiving a heavy backlash from stockholders requesting a new CEO be put in place.
The AP has the latest:
A pension plan that owns shares of Countrywide Financial Corp. has asked the mortgage lender’s board to oust Chairman and CEO Angelo Mozilo amid criticism of the company’s management and a sharp decline this year in its stock price.
The Washington D.C.-based American Federation of State, County and Municipal Employees, which counts 1.4 million members, asked the board to replace Mozilo with two independent directors to the board in a six-page letter sent late Thursday.
In its letter, the union-affiliated pension plan called on the Calabasas-based company to also replace its executive compensation committee with people who have not played a role in the committee’s actions.
“Adding new independent directors is a way for stockholders to change an atmosphere that allows a dominant dual-role chairman and CEO to operate without appropriate checks and balances,” Gerald W. McEntee, president of the union and chairman of its pension plan, wrote in the letter.
This is certainly an interesting turn of events. It remains to be seen how Countrywide chooses to respond.
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