Inventory
info icon
Single family homes on the market. Updated weekly.Powered by Altos Research
690,015-16,539
30-yr Fixed Rate30-yr Fixed
info icon
30-Yr. Fixed Conforming. Updated hourly during market hours.
6.87%-0.01

FHFA axes executive pay at Fannie and Freddie

The Federal Housing Finance Agency in its role as conservator of Fannie Mae and Freddie Mac significantly reduced the amount of pay chief executive officers at the firm will earn in the future.

“The 2012 pay program reduces top executive pay by nearly 75% since conservatorship, eliminates bonuses, and establishes a target for new CEO pay at $500,000,” the FHFA said in a statement.

The current, and outgoing, chief executives at the government sponsored enterprises, Michael Williams at Fannie and Charles ‘Ed’ Haldeman at Freddie, both drew criticism from Congress for earning millions of dollars in salaries.

Critics of compensation caps say relatively low levels of pay will not draw top talent to the positions. Williams and Haldeman are both leaving their jobs, likely this year.

“I believe the new compensation program strikes the balance between prudent executive pay including the elimination of bonuses, with the need to safeguard quality staffing in order to protect the taxpayers’ investment,” said FHFA acting director Edward DeMarco.

“A sudden and sharp change in pay from these levels would certainly risk a substantial exodus of talent, the best leaving first in many instances,” he added. “A significant increase in safety and soundness risks and in costly operational failures would, in my opinion, be highly likely.”

[email protected]

Most Popular Articles

Latest Articles

Celebrating your greatest asset: Simple holiday employee appreciation ideas 

As we approach the end of the year and celebrate the holidays, let’s not forget your organizations #1 asset. YOUR TEAM! I know the year hasn’t been the greatest for our industry, or most industries for that matter. But if your company is still standing better yet, thriving, then don’t overlook the people that got you here.

3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please