Obama wants review of Fannie-Freddie CEO pay
I'm normally skeptical of politicians wading into issues of executive compensation, but I think Barack Obama and Senators Charles Schumer and Jack Reed are right to ask for a government review of the departure packages for
Outgoing Freddie Mae (NYSE: FRE) CEO Richard Syron and Fannie Mae's (NYSE: FNM) Daniel Mudd could walk away with $14 million and $9.2 million respectively -- a far cry from the 9-digit packages that several top executives at the big banks left with, but still an awful lot of money for running companies into the ground to the point where a taxpayer funded bailout was necessary.
In a letter to Treasury Secretary Henry Paulson and Federal Housing Finance Agency director James Lockhart, Obama asked that (subscription required) the takeover deal "void any such inappropriate windfall payments to outgoing CEOs and senior management."
Is it political grandstanding? Of course, but it's also right on. Syron and Mudd should leave Freddie and Fannie without two nickels to rub together and if things are so dire that we have to fund a bailout, there shouldn't be enough left to pay outgoing CEOs multi-million dollar severance packages.
Outgoing Freddie Mae (NYSE: FRE) CEO Richard Syron and Fannie Mae's (NYSE: FNM) Daniel Mudd could walk away with $14 million and $9.2 million respectively -- a far cry from the 9-digit packages that several top executives at the big banks left with, but still an awful lot of money for running companies into the ground to the point where a taxpayer funded bailout was necessary.
In a letter to Treasury Secretary Henry Paulson and Federal Housing Finance Agency director James Lockhart, Obama asked that (subscription required) the takeover deal "void any such inappropriate windfall payments to outgoing CEOs and senior management."
Is it political grandstanding? Of course, but it's also right on. Syron and Mudd should leave Freddie and Fannie without two nickels to rub together and if things are so dire that we have to fund a bailout, there shouldn't be enough left to pay outgoing CEOs multi-million dollar severance packages.











Reader Comments (Page 1 of 1)
9-10-2008 @ 7:56PM
Need Job said...
I would like the CEO job and I promise to do as bad a job as the out going CEO's but I'll do it for 5 million,saving tax payer's 9 million this year.
9-10-2008 @ 8:28PM
winslow said...
Obama is the only politician talking sense at this point. The entire system is going down the tubes. It is more than obvious the "Bush" methods of governing have not worked. This may be the last of the USA as we know it.......thanks to all the "white-collar" criminals.
9-11-2008 @ 9:03AM
Chris K. said...
It's nice for Obama to speak out after the whole thing has fallen apart. I guess Fannie's contributions to Obama's campaign at least delayed any action on his part. http://www.opensecrets.org/news/2008/07/top-senate-recipients-of-fanni.html
I think everyone would like to see the Fannie/Freddie CEO's get tossed out with a nickel. However, I imagine they already have a substantial amount of accrued compensation and probably a solid contract promising them even more upon their exit.
I think the Senate banking committee deserves more scrutiny, as well. I think one of the biggest problems with our politicians is that they seldom prevent a problem, they only take action after it is too late. That applies to both parties.
9-12-2008 @ 2:09AM
VIGIL said...
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Thank you for having taken my phone call on 09-10-08
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9-18-2008 @ 2:28PM
Cowboy said...
Fannie Mae & Freddie Mac Debacle - The Obama Connection
http://www.sodahead.com/blog/15788/
9-27-2008 @ 12:27AM
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