CEOs of mortgage giants Fannie and Freddie get big raises
NEW YORK (AP) — The CEOs of government-backed mortgage giants Fannie Mae and Freddie Mac are getting large raises, to about $4 million a year, as the government relaxes rules that were imposed on the companies after they suffered big losses and were bailed out.
In forms filed with the Securities and Exchange Commission on Wednesday, the companies disclosed that Fannie Mae CEO Timothy Mayopoulos and Freddie Mac CEO Donald Layton will get annual base salaries of $750,000 each, $2.1 million in fixed deferred compensation and $1.2 million in at-risk deferred salary.
Shelby is a longtime critic of Fannie and Freddie, and he has proposed legislation to reshape the housing finance system and wind down the two mortgage giants.
The gradual recovery of the housing market in recent years has made Fannie and Freddie profitable again, and they have fully repaid their government bailouts.
According to a government report, median pay for nearly 2,000 senior managers at Fannie Mae and Freddie Mac exceeded $200,000 that year, and 12 executives got $35.4 million in salary and bonuses in 2009 and 2010.