Financial propriety

Re “CEO sold as stock dropped,” Sept. 29

Countrywide Financial Corp. Chief Executive Angelo Mozilo, who is now 68 years old, entered into plans authorized by U.S. Security and Exchange Commission rule 10b5-1 as an estate planning tool used by many executives to provide an orderly means for managing their stock holdings and avoiding any possible appearance of insider stock trading.

The only change made to Mozilo’s 10b5-1 plan reflected revisions to his financial plan that were necessary because of the negotiation of a new employment contract with the company.

His plans reflect his intention to diversify his investment portfolio as he approaches retirement. Still, he remains Countrywide’s largest individual shareholder, by far.

These actions were taken on the advice of his personal financial advisor, and once the various plans were instituted, Mozilo did not exercise any control over the execution of any particular sale. All transactions are automatically executed using the pre-established terms.

Sandor E. Samuels

Chief legal counsel

Countrywide Financial

Corp., Calabasas