The Federal Housing Finance Agency or FHFA detailed new executive management compensation programs for top executives at Fannie Mae (FNM) and Freddie Mac (FRE). The programs were adopted by the Boards of Directors of Fannie Mae and Freddie Mac and approved by FHFA.
According to a regulatory filings, Freddie Mac's Chief Executive Officer Charles Haldeman and Fannie Mae's Chief Executive Officer Michael Williams will receive $900,000 in 2009 annual base salary, $3.1 million in annual deferred pay, and up to $2 million in target annual long-term incentive award, which is payable based on performance.
The Agency said that the plans significantly reduce compensation from the levels in place prior to conservatorship. On average, total compensation for executive officers at the two Enterprises for 2009 is down 40% from pre-conservatorship levels.
Beginning January 1, 2010, further reductions will be made so that base salary for executive officers will not exceed $500,000 per year, except for five positions approved by FHFA . The exceptions are the Enterprises' CEOs and CFOs, and the COO of Freddie Mac. In contrast, before the conservatorships in 2008, the Enterprises had 16 officers with salaries above $500,000. In 2010, no executive officers will receive perquisites exceeding $25,000 without FHFA approval.
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