Dec. 24 (Bloomberg) — Fannie Mae Chief Executive Officer Michael Williams and Freddie Mac CEO Charles Haldeman Jr. are each eligible for compensation of as much as $6 million this year, the companies said today in regulatory filings.
By Jody Shenn
Feinberg didnt have veto power, as he does over compensation of senior executives at certain companies dependent on U.S. aid through the Treasurys Troubled Asset Relief Program such as General Motors Co. and American International Group Inc.
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Fannie, Freddie CEOs May Receive $6 Million for 2009 (Update1)
The future role of the entities, which now serve both as public companies and instruments of government housing policy, has yet to be determined, Edward J. DeMarco, acting director of the FHFA, said in the agencys statement.
Lawmakers have protested pay at banks that received government support. Feinberg should be given the power to recover outrageous bonuses of AIG executives who failed to return them to the company as promised, Senator Charles Schumer, a New York Democrat, said in an interview to be aired this weekend on Bloomberg Televisions Political Capital with Al Hunt.
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Overall, pay for top executives of the mortgage-finance companies is down 40 percent from before they were seized, the regulator said in a statement.
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The agency sought the guidance of Kenneth Feinberg, President Barack Obamas special master on executive pay, before approving the compensation packages, DeMarco said.
Pay at the mortgage-finance companies, which were seized by the U.S. in September 2008, added to debate over salaries for executives at companies uggs on sale dependent on government bailouts. Compensation must be sufficiently high to attract and retain top talent, their regulator, the Federal Housing Finance Agency, said in a statement.
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Since shortly before the government seized Fannie Mae, eight of its top 11 executives have left, FHFA said. That includes Mudd, now head of Fortress Investment Group LLC. All four of the highest Freddie Mac executives have departed, including CEO Richard Syron.
As this debate progresses, it will be essential that the enterprises continue to perform their current role, DeMarco said. The uggs for cheap enterprises must attract and retain the talent needed to accomplish these objectives.
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Fannie Mae and Freddie Mac have tapped $111.6 billion in aid from the government, as the Obama administration made them the centerpiece of its efforts to revive the housing markets. The companies are government agencies in all but name now, making the pay excessive compared with that of federal officials, said Bert Ely, chief executive officer of Ely & Co.
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Haldemans uggs on sale compensation will be pro-rated to reflect his July hire, while the pay for Williams will be adjusted based on his promotion in April from chief operating officer.
Washington-based Fannie uggs outlet store Mae, which has lost $120.5 billion over the last nine quarters, has requested $60.9 billion from the Treasury Department this year. McLean, Virginia-based Freddie Mac has tapped $50.7 billion in government capital since November 2008 and recorded $67.9 billion in cumulative losses over the last nine quarters amid a three-year housing slump.
Fannie Mae rose 1 cent to $1.05 at 10:04 a.m. in New York Stock Exchange composite trading. Freddie Mac fell 1 cent to $1.30. The government now holds almost 80 percent of the equity in each company.
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Daniel Mudd, Fannie Maes CEO at the time it was seized, received $12.2 million in salary, bonuses and stock in 2007.
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In addition uggs outlet to the CEO pay, 10 additional executives at the two companies are eligible collectively for $30.1 million in compensation for this year.
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The pay packages for Williams and Haldeman each include target incentive awards of $2 million. The executives also can get $3.1 million each in deferred salary. Those amounts will only be paid over time, with the approval of the companies boards and FHFA, if the companies meet performance metrics and the executives remain at the firms, the regulator said.
Freddie Mac Chief Operating Officer Bruce M. Witherell, its second-highest paid executive, has target compensation of $4.5 million, pro-rated to his hiring in August. Fannie Mae Chief Financial Officer David M. Johnson would be paid $3.5 million.