Fannie/Freddie CEOs Clean Up on $6 Million a Piece for the Year
Yes, I totally understand this (not). Compensation is based on performance, right? So since the Chinese haven't sent $2 trillion in worthless Fannie/Freddie paper rushing back to the States, I guess these CEOs can count their years a success.
Fannie Mae Chief Executive Officer Michael Williams and Freddie Mac CEO Charles Haldeman Jr. are each eligible for compensation of as much as $6 million this year, the companies said today in regulatory filings.
Pay at the mortgage-finance companies, which were seized by the U.S. in September 2008, added to debate over salaries for executives at companies dependent on government bailouts. Compensation must be sufficiently high to “attract and retain” top talent, their regulator, the Federal Housing Finance Agency, said in a statement.
Fannie Mae and Freddie Mac have tapped $111.6 billion in aid from the government, as the Obama administration made them the centerpiece of its efforts to revive the housing markets. The companies are “government agencies in all but name now,” making the pay excessive compared with that of federal officials, said Bert Ely, chief executive officer of Ely & Co.
“It’s not clear to me what justifies the high salaries of the CEOs, but also the commensurately higher salaries for the lower-level folks” at the companies, Ely, a banking consultant in Alexandria, Virginia, said today in an interview.
The FHFA is smoking crack.