Looks as if the ex-CEOs of Fannie Mae and Freddie Mac—the mortgage finance giants that were recently taken over by the federal government—might not be strapping on those golden parachutes after all...
The Federal Housing Finance Agency notified former Fannie CEO Daniel Mudd and former Freddie CEO Richard Syron that they will not receive the exit pay called for in their employment contracts now that the companies are under federal control, the regulator said in a statement yesterday on its Web site.
FHFA Director James Lockhart on Sept. 12 proposed limiting payments for departing executives, board members, contractors, outside lobbyists and business partners. U.S. senators including Charles Schumer of New York, Jack Reed of Rhode Island and Richard Durbin of Illinois, had urged FHFA to trim or eliminate bonuses for Mudd and Syron, citing their "failed leadership..."
Syron, 64, could have received $12 million to $14 million in exit pay, while Mudd, 50, could have gotten $7 million to $9 million, David Schmidt, a senior consultant for New York-based compensation firm James F. Reda & Associates, said last week after reviewing employment agreements in company filings.