UPDATE 1-Countrywide CEO has $121.5 mln gain, was paid $22.1 mln
(Adds background)
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), 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.
Some of Mozilo's awards related to previous years, or may never vest, Countrywide said.
Other compensation included $44,454 for personal use of company aircraft, $8,581 for country club fees, $23,755 for automobile use, and other items.
Compensation is based on salary, bonus, the value of stock options and other awards granted during the year, and incentives and perks. The values of restricted stock and stock options are taken as of the date they are granted.
In its filing, Countrywide provided other calculations of Mozilo's compensation.
According to a "summary compensation table," Mozilo's compensation was $10.81 million in 2007, down 79 percent from a year earlier. In a separate table, Countrywide said Mozilo's "actual compensation," comprising base salary, incentives and equity awards, was $11.9 million.
Countrywide did not immediately return a call seeking comment.
In January 2008, Mozilo said he would forfeit $37.5 million of severance and perks upon his retirement. Mozilo co-founded Countrywide in 1969.
Separately, Countrywide said it awarded Chief Operating Officer David Sambol $13.15 million of compensation in 2007.
Bank of America has appointed Sambol to run the combined companies' consumer mortgage operations, and agreed to award him $28 million as an inducement to take the job.
Countrywide shares closed up 20 cents at $5.78 and Bank of America closed up $1.01 at $37.87 on Thursday on the New York Stock Exchange. (Editing by Toni Reinhold, Phil Berlowitz)
