Two former titans of Wall Street and the head of the nation's largest home lender are due to testify Thursday before a congressional committee examining the link between executive pay and the mortgage crisis.
The House Committee on Oversight and Government Reform chaired by Rep. Henry Waxman, D-Calif. (pictured at right) will question Countrywide Financial Corp. founder and CEO Angelo Mozilo, former Merrill Lynch & Co. chairman and CEO Stanley O'Neal and ex-Citigroup Inc. chief Charles Prince.
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All three executives made headlines last year for the drubbing their companies took on bad bets on the U.S. housing market -- and for their own, some would say, majestic compensation. Upon his departure from Citigroup in November, Prince left with approximately $68 million, while O'Neal collected about $161 million after he stepped down in October. Both Citigroup and Merrill Lynch reported billions of dollars in losses on risky investments in mortgage-backed securities. Countrywide's Mozilo reportedly stood to collect a windfall of $115 million after his firm agreed in January to a yet-to-be completed $4 billion sale to Bank of America Corp. But after facing heavy criticism from lawmakers, Mozilo said he would forfeit $37.5 million in payments tied to the deal.
Their pay packages are drawing scrutiny from lawmakers as homeowners across the country are at risk of losing their homes and recession looms. - Donna Block
See story from TheDeal.com: Exec pay generates barbs
See Dealwatch: Banks, write-downs and the CEO shuffle
