UPDATE 1-Countrywide CEO has $121.5 mln gain, was paid $22.1 mln

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By Jonathan Stempel

NEW YORK, April 24 (Reuters) - Countrywide Financial Corp CFC.N Chief Executive Angelo Mozilo realized $121.5 million from exercising stock options and was awarded $22.1 million of compensation in 2007, a year when the U.S. housing slump pummeled the nation's largest mortgage lender.

The awards came in a year Countrywide lost $704 million, its first loss in more than 30 years, and saw its shares decline 79 percent.

Mozilo, long criticized for his compensation packages, realized the option gains by acquiring and selling 4.92 million shares under a prearranged trading plan, Countrywide said in a Thursday filing with the U.S. Securities and Exchange Commission.

Mozilo's compensation fell 49 percent from a reported $43 million in 2006. The bulk of his 2007 compensation was from $20 million of stock and option awards made early in 2007, before borrower defaults soared and liquidity grew tight.

Countrywide, based in Calabasas, California, drew down an $11.5 billion credit line, curtailed a wide variety of riskier home loans, and cut about 11,000 jobs as the housing slump deepened.

It agreed in January 2008 to be acquired by Bank of America Corp (BAC.N: Quote, Profile, Research, Stock Buzz), the second-largest U.S. bank, for $4 billion.

According to the filing, in 2007 Mozilo was awarded a $1.9 million salary, the $20 million of stock and option awards, and $176,513 of other compensation. He received no bonus.