Committee Holds Hearing on CEO Pay and the Mortgage Crisis

The Committee on Oversight and Government Reform held a hearing titled, “Executive Compensation II: CEO Pay and the Mortgage Crisis” on Friday, March 7, at 10:00 a.m., in 2154 Rayburn House Office Building.

The hearing examined the compensation and retirement packages granted to the CEOs of three corporations deeply involved in the current mortgage crisis. This was the Committee’s second hearing on executive compensation practices. On December 5, 2007, the Committee examined the role of compensation consultants in determining CEO pay. A preliminary transcript of this hearing is now available.

The following witnesses testified:

• Panel I
• Dr. Susan M. Wachter, Richard B. Worley Professor of Financial Management, The Wharton School, University of Pennsylvania
• The Honorable William F. Galvin, Secretary of State, the Commonwealth of Massachusetts
• The Honorable Brenda L. Lawrence, Mayor, City of Southfield, MI
• Dr. Anthony Yezer, Professor of Economics, The George Washington University
• Ms. Nell Minow, Editor and Co-Founder, The Corporate Library
• Panel II
• Mr. Charles Prince, Former Chairman and CEO, Citigroup
• Mr. Richard D. Parsons, Chair, Personnel and Compensation Committee, Citigroup
• Mr. E. Stanley O'Neal, Former Chairman and CEO, Merrill Lynch
• Mr. John D. Finnegan, Chair, Management Development & Compensation Committee, Merrill Lynch
• Mr. Angelo R. Mozilo, Founder and CEO, Countrywide Financial Corporation
• Mr. Harley W. Snyder, Chair, Compensation Committee, Countrywide Financial Corporation