Bank of America Corp said it has agreed to pay $28 million to Countrywide Financial Corp Chief Operating Officer David Sambol to run the company’s mortgage operations. That’s 37% more than Bank of America’s CEO makes. [Reuters]
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Only if by “run it” they mean “run it into the ground”! Oh wait, theyre already there.
Maybe as 1st order of business he can give the guy in the story two post down his job back.
The way this is phrased almost makes you feel bad for Bank of America’s CEO.
That’s stupidity. I deal with Countrywide’s accounts daily. They are not that great to say the least. Their customer service is deplorable and their work ethic is non-existent. I don’t know why BOA is spending so much money financing them.
Only reason BofA picked up Countrywide was as a tax-writeoff. $28 million to write down billions in CW losses against BofA profits, for years to come, makes great business sense.
Is this a joke?
More proof the Dollar really isn’t worth shit
for their next trick, Hitler will be resurrected and hired on as the head of the Consumer Affairs department.
Isn’t that like asking the Mafia to run a prison?
What the hell?
@Carencey: Not humanly possible. Atleast, not from my perspective. How can I feel bad for a guy who brings in more cash in 1 day than most of America does in a year?
@savvy9999: Not to mention, picking up a customer base too. Gotta offset for those fleeing BoA in some form, no?
Corporate-land is either ruled by vacuous lunatics or they are all Islamic terrorist moles planted into major corporations years ago to wreck our economy.
@Papa Midnight: Thus the almost.
I was seriously waiting for someone to come in and try to justify it by saying insanely overpaid execs worked hard to get where they are, but I guess this is too much even for those folks.
This is the kind of thing that makes no sense for anyone but the guy getting the $28 million dollars. If BOA told the guy, sorry we are only paying you $5 million this year, would he have walked? Would it have been impossible for them to find a suitable replacement at that pay level. I find it almost impossible to believe. I mean I’d gladly take $5 million to make crappy, risky business decisions that ran my company into the ground.
It seems in the area of executive compensation, the good ole’ boy network forgets the first rule of capitalism is the rule of supply and demand. Why pay more for services than the market would dictate you have to? If I was a BOA stockholder I’d be pissed!
To be fair to BofA, they got a REALLY good deal on their new executive. See, Countrywide gave them an Interest-Only COO for the first five years. That allows them to make conveniently lower payments while getting all the benefits of executive ownership.
Given the competitive rates these days, it’s almost impossible to forsee an upward readjustment dilemma, but should market variables change, the rate on the new executive could be higher than it is at the point of signing. For example, if the COO manages to run the company into the ground, he could receive a large bonus, consistent with typical market executive pay standards.
That would require the payments on the original $28 million to increase. But BofA can always call its lender, BofA and negotiate a better rate, or refinance and take the equity to buy the executive an assistant that will either A) sleep with him or B) blow the whistle on him and get him sent to prison. At the time of such an incarceration, the contract would be considered void and the lender would retain the right to foreclose on the executive.
Just sign here.