Great Payday for Countrywide

By
Real Estate Broker/Owner with Home Run Realty, LLC

cash

Today CNBC reported that Countrywide's Chief Operating Officer David Sambol will receive a $28 Million retention bonus from Bank of America; $20M cash, $8M restricted stock. After Bank of America takes over his salary will be $500,000/yr base, annual incentive $4M plus $150,000. equity-Nice Paycheck!

hmmmm-I guess they don't want to lose him, because of the great job he has done so far.

Comments (17)

Dave Woodson
Dave Woodson - Chesterton, IN
Not the Average Agent
and, people wonder why I do not use CW.  I can't stand them.  They are most unhappiest LOs that you will meet
Mar 28, 2008 03:56 PM
Ron Tarvin
Residential, Investment properties, rehab projects, property management, luxury homes, new construction! - Katy, TX
Broker, Katy, Houston, Cypress 77450,77494,77095

Wow....I've often wondered where I could get a job making millions of dollars doing a poor, terrible,horribly failing job.  It really is disgusting.

Mar 28, 2008 03:57 PM
Brian Luce
HomeStarr Realty Inc. - New Hope, PA
Associate Broker

It funny.  They offered me $22 Million but I turned them down.....  :-(

 

Seriously, Every time I hear something like that, I just have to scratch me head... 

Mar 28, 2008 04:01 PM
Chris Horton
Horton's Lawn Care L.L.C. - Burton, MI

Nothing like rewarding someone who failed their previous company so you could buy it 30 mill cheaper than a few years ago probably

Mar 28, 2008 04:03 PM
Teresa Berry
Seattle, WA

WOW is right - and Billie..a nice scoop of info - we all need a little retention like that don't ya think! Makes you stop and think doesn' it! hmmm

Mar 28, 2008 04:03 PM
Brian Schulman
Coldwell Banker Residential Brokerage, Lancaster PA - Lancaster, PA
Lancaster County PA RealEstate Expert 717-951-5552
Donald Trump once said that if you're big enough, your creditors can't afford to let you go down the tubes.  Maybe there's a parallel here - if you lose enough money...  I wonder how much the mortgage interest rate will have to increase to pay for that retainer bonus?
Mar 28, 2008 04:07 PM
Mary Thomas BH,MB,HB, PV, Estates LA+
Remax Estates Properties - Los Angeles, CA
Mary C. Thomas Your Agent around the Globe

Unbelievable,pay him for his greed and bad loans for people who wanted to own a home and start over.

Not every one they loaned to was a negligent on purpose bad debt. SOme just had a run of bad Luck. 

Mar 28, 2008 04:10 PM
Courtney Cooper
Cooper | Cartwright - Seattle, WA
206-850-8841
Wow...that is amazing...
Mar 28, 2008 04:16 PM
Tony Grego, 317-663-4173 #1 Trade Association for Alternative Inv
REISA - 317-663-4173 - Indianapolis, IN
Never understand all of this stuff. Must have been worked out with the buyout. Not saying it is right it is what it is     
Mar 28, 2008 04:25 PM
Tony Grego, 317-663-4173 #1 Trade Association for Alternative Inv
REISA - 317-663-4173 - Indianapolis, IN
Never understand all of this stuff. Must have been worked out with the buyout. Not saying it is right it is what it is     
Mar 28, 2008 04:25 PM
Renee Busse
Tennessee Realty - Dyersburg, TN
ABR,ePRO Dyer Co. TN Real Estate
Hmmm. Reminds you of the good ole' Enron days doesn't it? Sickening.
Mar 28, 2008 04:36 PM
Deborah Burns ~ Seattle Real Estate Agent
Realty Executives -BRIO - Seattle, WA
Very creative money management, it's always smart to reward employees for excellent work, good leadership, effective fiscal management, keeping costs down, and most importantly....adding to the company's bottom-line! 
Mar 28, 2008 07:23 PM
Billie Dalessio
Home Run Realty, LLC - North Haven, CT

Thanks everyone for your comments- I misspelled his name it's David Sambol- Here's more about him from Forbes

www.forbes.com/finance/mktguideapps/personinfo/FromPersonIdPersonTearsheet.jhtml?passedPersonId=890413 - 39k -

Mar 29, 2008 01:30 AM
David Saks
(retired) - Memphis, TN

Hi Billie. Great post. 

I've believed, since the middle of last year, that any acquisition of Countrywide Financial Corp. by Bank of America Corp. would create little stability in the mortgage markets. The market for mortgage-backed securities is dead. Bank of America wanted a pat on the back from Wall Street with their paltry $2 billion infusion into the failed mortgage lender, to help them, back around Septamber of 2007; Bank of America was looking for a bargain and found a deal. I also believe that it was an option to purchase that company, nothing more or less. Maybe we're starting to discover who orchestrated the buyout. Duh?

The crisis is just beginning and the worst impact on the economy has yet to be seen. Analysts and investors are worried because of the mounting heavy losses and the absurdity of the marginal help that the Federal Reserve Bank extended to the collapsed mortgage lending sector.

I believed then that Countrywide Financial could not survive. The Fed and Bank of America are the Dr. Kevorkians of the mortgage industry. Giving Countrywide money was like giving spare change to a drunk panhandler with cirrhosis of the liver; it makes an already extremely unfortunate condition fatal.

Countrywide's depositors have already extracted millions from the lenders bank. The greed that the government and the mortgage lenders perpetrated over the last eight years is shameful. It's injured the reputation of our country. The payoff to Sambol is a coupe de grace.

Mar 29, 2008 04:38 AM
Billie Dalessio
Home Run Realty, LLC - North Haven, CT

an update;

LOS ANGELES - In a March 29 story about Countrywide Financial Corp., The Associated Press incorrectly described upcoming stock payments to CEO Angelo Mozilo and President David Sambol. The two executives will receive a combined $19 million in payments as a result of their employment contracts with Countrywide, not because of the company's pending takeover by Bank of America Corp.

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

still alot of money

Apr 01, 2008 01:39 PM
Stella Barbour
NoVa Brokers LLC - Vienna, VA
Principal Broker, Serving Virginia and Maryland
Great post.  I hate that they are surviving because of the people they gave loans.  No credit, no problem; no ID, no problem; no job, no problem;  Those are all of the clients I am getting that are losing their homes today that did business with countrywide.
Apr 01, 2008 03:29 PM
Mesa, Arizona Real Estate Mesa Arizona Realtor
Homes Arizona Real Estate LLC - Mesa, AZ
AzLadyInRed

Billie, I know you wrote this quite awhile ago, but I wanted to reciprocate and welcome you to Active Rain. ;-)

Pepper

 

Apr 24, 2008 08:52 AM