CtW Investment Group, which represents the pension funds of seven labor unions, has called for the resignation of Harley W. Snyder, a Countrywide Financial Corp. director for 16 years and the chairman of its compensation committee.
The group sent Mr. Snyder a three-page letter Wednesday saying that the board has not aligned executive pay with “actual share price or operating performance,” and that the compensation of board members, who were paid $344,988 to $538,824 last year, “is both unjustified and a likely source of the board’s passivity.”
Neither Mr. Snyder nor Countrywide would discuss the letter.
Countrywide disclosed last month in a filing with the Securities and Exchange Commission that eight senior executives would receive one- and two-year extensions on options to buy shares in the company at prices ranging from $32 to $39.
The extensions are “just the latest failure by Snyder to hold Countrywide insiders accountable to shareholders,” CtW Investment said. The group had previously called for the resignation of Angelo Mozilo, Countrywide’s chairman and chief executive.
Countrywide said Wednesday that it is on track to have nearly 200 deposit-taking locations by yearend, most of them inside its mortgage offices.
The company said that it now has 165 “financial centers” in 33 markets and that it plans to add 35 centers and six markets over the next seven weeks and to continue expanding the network next year.
On a conference call last month, Countrywide told investors that it had 150 centers and planned to add 50 by yearend. In August, Countrywide said it would expedite a plan to fund more loans through its thrift when a liquidity crunch seized the markets.