Paycut looms for mortgage giant execs

TRD New York /
Mar.March 09, 2012 02:30 PM

A dozen housing executives are about to take a massive paycut.

The Associated Press reported that the salaries of the top 70 employees at Fannie Mae and Freddie Mac will be limited to $500,000 per year and bonuses will be eliminated. In 2009 and 2010 the top 12 executives at the government-sponsored enterprises collectively earned $35.4 million in bonuses and salary, with Fannie CEO Michael Williams and Freddie CEO Edward Haldeman receiving $9.3 million and $7.8 million, respectively, for the two-year stretch.

The executives’ compensation has come under fire from members of Congress who complain the pay packages are inappropriate for organizations that benefited from the largest taxpayer bailout, $170 billion, in 2008. There’s no start date in place for the revised compensation, and in 2012 the CEOs will each be paid $5.4 million. They previously announced they would be stepping down at the end of the year.

Edward DeMarco, the director of the Federal Housing Finance agency that oversees Fannie and Freddie, has defended the old salaries and bonsuses, saying they are needed to retain talented executives, without whom, taxpayers would suffer greater losses. [AP]


Related Articles

arrow_forward_ios
Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

1735 York Avenue and Bonjour Capital's Charles Dayan (Credit: Google Maps)

Dayan’s Bonjour Capital inks $115M refi for Upper East Side building

US home mortgage debt surges past pre-recession record

Wall Street warns against privatizing Fannie and Freddie without Congress guarantee

Trump official to pressure Congress to privatize Freddie and Fannie

Mortgage rates plummet to lowest levels in nearly 2 years

Trump’s move to take Fannie and Freddie private could mean higher mortgage costs

Mortgage guarantors Fannie Mae and Freddie Mac to return to private control

arrow_forward_ios