Hello Freddie? I’d like to apply for a job! : Straight Talk About Mortgages and Real Estate
Hello Freddie? I’d like to apply for a job!
by Tom Vanderwell on September 25, 2009
in Mortgage Matters, Mortgage Rate Updates, banksOkay, this is just too much. Supposedly when the government (meaning you and me!) bought/bailed out Fannie Mae and Freddie Mac, they gave all of the top executives a major pay cut. I mean after all, they were going from being private citizens to being civil servants.
Well, guess what, Freddie just hired a new CFO. And guess what, they are paying him $3.5 Million a year. That’s right, $3.5 Million per year. Oh, and that works out to almost a 400% increase from what he was making last year.
Oh, Freddie? Are you out there? If you are offering 400% pay increases, I’d like to apply for a job!
Tom VanderwellFreddie Mac hands out big bonus to new CFO | footnoted.org
Last we checked, Freddie Mac (FRE) was still operating under a conservatorship, having received over $51 billion in taxpayer money. And, we seem to recall lots of chest-beating last year about sharply lower salaries and fewer perks for the new group of top executives charged with setting Freddie (and Fannie Mae) back on the path to prosperity.So you can imagine our surprise when we came across this employment contract yesterday for Freddie’s newly named CFO, Ross J. Kari. Here’s a few key bullets:
* annual compensation of $3.5 million (this includes $675K in salary, $1.6 million in something called “additional annual salary” and $1.1 million in a target incentive
* a $1.95 million signing bonus
* immediate buyout of Kari’s house (or perhaps houses)
* reimbursement for travel between Washington D.C. and Kari’s residences in Ohio, Washington and OregonNeedless to say, none of this — and certainly not the ridiculous sounding additional annual salary — was included in the press release that Freddie put out earlier this week.
Technorati Tags: Freddie Mac, Government Bailout, Executive Compensation
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