O’Neal and Prince questioned over exit packages

by Gill Montia

Story link: O’Neal and Prince questioned over exit packages

Two leading US bankers, who have been forced to resign over losses incurred in the sub-prime mortgage crisis, are appearing before a congressional committee today.

Stanley O’Neal and Charles Prince, the former chief executives of Merrill Lynch and Citigroup, are being examined by the House Oversight and Government Reform Committee about the level of their remuneration.

A report published by the committee yesterday highlights the fact that in 2007, both men received hundreds of millions of dollars, through salaries, pensions and share sales, while the banks they governed lost a combined $20 billion in the last six moths of the year.

Mr O’Neal received $161.5 million in shares, options and retirement benefits when he left Merrill Lynch in October of 2007, while a month later, Mr Prince agreed an exit package with Citigroup that included a $10 million bonus and $28 million in stock and options. He also negotiated certain concessions valued at around $1.5 million.

Angelo Mozilo, chief executive of Countrywide Financial, the largest mortgage lender in the US, is also expected to testify before the committee.