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Saturday, December 26th, 2009   6:03 am | Author: chris | Economy, Money, Politics/Government |
Tags: compensation, Fannie Mae, Freddie Mac
While many are out of jobs or struggling to make ends meet some are raking it in.
In the last few months we have heard over and over again how the financial institutions that were on the brink of collapse decided to reward top executives with huge bonuses worth million of dollars.
The good times also apply to Fannie Mae and Freddie Mac who were in the middle of the mortgage mess. Both mortgage finance giants have been under government control since last year.
According to CNN Money:
“Fannie Mae CEO Michael Williams, who was promoted to CEO on April 21, will receive about $4.2 million in base salary and deferred cash payments for his time in the top job. The filing does not detail how much he was paid for his time as chief operating officer before his promotion, or what he will earn in 2010.”
“David Johnson, the chief financial officer and No. 2 at the company, was paid at a $3.5 million annual rate. The annual pay rate of five other top Fannie executives topped $2 million apiece.”
“In addition, Williams and three other top executives are eligible to receive payments pursuant to a 2008 retention program, according to the filing.”
“At Freddie, its slightly smaller rival, CEO Charles Haldeman will receive about half his $6 million package in 2009 since he was named to the top spot on July 21.”
“Haldeman, former chairman of Putnam Investment Management, is due to receive $6 million in 2010.”
“Bruce Witherell, Freddie’s chief operating officer and No. 2 at the company, was paid at a $4.5 million annual rate and is due to get that amount in 2010, while Ross Kari, the chief financial officer, was paid at a $3.5 million annual rate this year and is also due the same next year. Both joined the company since September so they will get only a fraction of that money this year.”
The major portion of top executive pay should be linked to long term results. Especially if the government, and the taxpayers are involved in assuring a company’s survival.