Fannie and Freddie CEOS receive major raises

by Justin da Rosa02 Jul 2015
Fannie and Freddie CEOs are set to enjoy massive paydays, after years of having their salaries capped following the economic crisis.
Fannie Mae CEO Timothy Mayopoulos and Freddie Mac CEO Donald Layton will each earn annual base salaries of $750,000, with a $2.1 million fixed deferred compensation and $1.2 million in at-risk deferred salary.

That will equate to $4 million per year for both, a substantial increase from salaries that were capped at $600,000 per year for the past few years.
According to the Federal Housing Finance Agency, the deferred compensation components are meant to entice both to stick with their respective companies.
FHFA director, Mel Watt said the pay hikes were done to “promote CEO retention, allow reliable succession planning and ensure the continuity, efficiency and stability of Enterprise operations,” according to the Wall Street Journal.
However, the decision to increase their salaries is already drawing criticism.
"As long as American taxpayers continue to serve as the backstop for Fannie and Freddie, FHFA should make decisions that protect taxpayers instead of ones that expose them to further risk," Senator Richard Shelby of Alabama who heads the Senate Banking Committee said in a statement, according to the Associated Press.
According to the Wall Street Journal, the U.S. Treasury Department is also critical of the move.
“(It) does not support FHFA’s new approach to CEO compensation at Fannie Mae and Freddie Mac and urged the agency to reject any increase,” a spokesperson told the Journal.


  • by Griff | 7/2/2015 10:49:50 AM

    Love that "retention" excuse. Like there is only one human being in the universe who can do what one dude can. Hogwash!

  • by Andrea | 7/2/2015 11:19:13 AM

    yes, of course pay raises are in order, since they are taking it from the Borrowers in form of higher Adjustments that were just increased July 01st with most major Lenders! Good going! I can smell the next crash!

  • by Najm | 7/2/2015 8:54:11 PM

    Love that, they deserve it we need them to continue to do a great job, fnf are the bloodlines for for real estate economy and our economy as a whole., How can you smell the next crash come on! the 2008 crash was not the work of FNF, I hope you are not believing what you hear from your elected officials and the main stream media. Please don't believe their lies fnf where forced to by bad mortgages that was generated by the big boys, fnf do not generate mortgages, they provide the liquidity so lenders can keep lending.


Is TILA-RESPA a good or bad thing long term?