Treasury & FHFA Approve Huge Compensation Packages for Fannie and Freddie Top Executives
A reveling report came out in mid December of 2009 listing the salary packages the top executives will receive at both Fannie Mae and Freddie Mac. The “compensation packages” total in the millions. This information comes on the heels of the Obama administration’s public admonishment on “Fat Cat” bankers who received millions in pay in one hand, while the other was extended begging for bailout funds.
While many Americans are struggling to just keep a roof over their head, the government is allowing unbelievable salaries to be paid to what is essentially two companies that are now extensions of the Federal Government. In a political maneuver that is typical of this day and age, the public was reassured initially by preliminary reports that stated a $900,000 cap was being placed on executive level positions within the two companies. This amount alone gave good reason to pause considering that the President of the United States only makes about $390,000 per year, plus $50,000 in expenses. The extra funding for Fannie and Freddie’s execs were hidden from the general public in the fine print. The base salaries were pushed out front, while the total of “compensation packages” was not revealed until their December reports came out.
Below is a listing of some of the executives and their pay.
Fannie Mae Executives
Michael Williams CEO $6,000,000
David M. Johnson CFO $3,600,000
Kenneth Bacon Unit Head $2,400,000
David Benson Capital Markets Chief $2,800,000
David Hisey Dept-CFO $2,200,000
Timothy Mayopoulos General Counsel $3,000,000
Keneth Phelan Chief Risk Officer $2,800,000
TOTAL $22,800,000
Freddie Mac Executives
Charles Haldeman CEO $6,000,000
Bruce Witherell COO $4,500,000
Ross Kari CFO $3,500,000
Robert Bostrom General Counsel $2,800,000
Paul George Human Resources Head $2,000,000
TOTAL $19,500,000
The public outcry at the extravagant salaries was met by representatives of the Federal Housing Finance Agency who stated “Freddie and Fannie must be able to attract and retain the talent needed”.
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