Fannie Mae CEO Awarded 11 m in 2005

Discussion in 'Wall St. News' started by pepper_john, Feb 9, 2006.

  1. How you guys like this story?

    WASHINGTON (AP) -- Embattled mortgage finance company Fannie Mae recently made an unusual change to its long-term bonus plan, awarding four of its five highest-paid executives $5.2 million in restricted cash instead of stock as part of their total compensation last year, the company said in a securities filing Wednesday.

    Chief Executive Dan Mudd, who was formally installed as CEO in June, received $11.5 million in total compensation for 2005 that included a cash bonus of nearly $2.6 million, an annual salary of $950,000 and another $8 million in restricted stock.

    Mudd's restricted stock, and that of other executives, won't actually be issued until after the company files its next earnings update with the Securities and Exchange Commission, expected in mid-March.

    The board put in place a new formula for determining how many shares of restricted stock each executive will receive.

    Fannie Mae shares rose 39 cents Wednesday to close at $54.63 on the New York Stock Exchange, down from a 52-week high of $64.97.

    Fannie, which has already identified more than $10.8 billion in previously undisclosed losses in its restatement, is expected next month to provide the markets with a critical update on the status and timing of its earnings restatement.

    That filing is also expected to address the impact of new accounting issues uncovered in a 16-month internal probe of alleged accounting misdeeds at Fannie, the results of which are scheduled to be released in a much-anticipated report later this month.

    Rob Levin, Fannie's new chief business officer, received $8.9 million in total compensation that included a cash bonus of $1.8 million, $4.3 million in restricted stock and another $2.1 million in restricted cash paid in lieu of Fannie's usual restricted stock award.
  2. Good story. When lots of traders and investors realized this, it would be fun playing with Fannie.
  3. FastFred


    There needs to be something done with executive pay.