Compensation for the chief executive officers of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corp. could increase by more than 500 percent under a new compensation plan.
Since Jan. 1, 2013, total compensation for the CEOs of the government-sponsored enterprises has been capped at $600,000 base salaries by their regulator, the Federal Housing Finance Agency.
Over at Fannie Mae, Timothy J. Mayopoulos was installed as president and CEO in June 2012. Freddie Mac CEO Donald H. Layton was appointed in May 2012.
In a filing with the Securities and Exchange Commission, Washington-based Fannie said that FHFA approved on June 29 changes to Mayopoulos’ compensation.
His base salary is being raised to $750,000, while his fixed deferred salary has been established at an annual rate of $2,050,000. In addition, he has an at-risk deferred salary with an annual target amount of $1,200,000.
“Mr. Mayopoulos’ total direct compensation target of $4,000,000 is substantially below the 25th percentile of compensation for chief executive officers in our comparator group,” the statement said.
At Freddie, Layton has been approved for the exact same compensation plan as Mayopoulos, according to a separate SEC filing by the McLean, Virginia-based firm.
Both compensation plans go into effect today. This year’s compensation will be prorated.
