Freddie Mac has a new CEO CFO and his name is Ross Kari. Can you guess his compensation? Is it reasonable in light of the fact that Freddie Mac is controlled by the government?
In these days when we have 5.4 million people who have been on unemployment for at least six months, Kari's compensation is $5.5 million, which includes $2 million as a signing on bonus and a generous salary of $2.3 million.
Freddie Mac was bailed out by the government to the tune of $51 billion and more bailout money may be needed. Outside pay experts are outraged. Paul Hodgson of The Corporate Library said: "We are in a period when this shouldn't be acceptable. ... Even if pay is competitive to the market, that doesn't make it OK today."
Kari comes from Fifth Third Bancorp (NASDAQ: FITB). His compensation there was $580,000 and he received a $100,000 signing bonus. Fifth Third received $3.4 billion in TARP money, so it was not 100% pure and clean of mismanagement.
Do you believe that Kari's compensation is over the top in this economy?
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Reader Comments (Page 1 of 1)
10-03-2009 @ 5:48PM
Rose said...
ARE YOU KIDDING ME??? WHERE IS OUR BONUS FOR BAILING THIS DUMBSHITS OUT?????????
10-03-2009 @ 7:26PM
ij70 said...
Common Rose, we already got our bonus, we have Mr. Obama.
10-03-2009 @ 9:23PM
william lindblad said...
The Fed says things are getting better.
In a previous article you questioned the ability of the Fed to engage in transactions with impunity of audit. Does the appointment of a new CEO of Freddie Mac have an correlation to Fed actions? I am sure that these two entities have no relationship, but this action would not bear much fruit under a common sense audit either. For any of this to make sense we have to go back in time and try to understand how the agency that was supposed to control both Fannie and Freddie acted. For any that bother to read this comment - it was the OFHEO, or as they like to put it, the Office of Federal Housing and Enterprise Oversight. Now, if you want to really get ticked off, see who was in charge, see who still is in charge and than, see what they get paid.
I think that there is an old method called the "Peter principal" in which someone rises to their highest level of incompetence. At this point it may be ready for a name change. Lot's of choices. Obama principal, Pelosie principal, Franks (I like Barney, really, as he belongs on Sesame St) principal. All in all, the Republicans are bad, but the Democrats are behaving like their jackass insignia.
Enough said. Winter is coming and so is unemployment at 10%+.
Ben - things are not getting better and you just have to be a Democrat as you are talking like a braying insignia.
10-03-2009 @ 10:40PM
SouthernMan said...
Barney has a new friend. Was it good for Fwankie?
10-03-2009 @ 10:43PM
SouthernMan said...
Corrruption to the limit...courtesy of the crum bums. Time for major change alright...REVOLUTION around the corner...every single one of our polashts shtans needs tar and feathering and a rail job.