Democratic presidential candidate Barack Obama today sharply criticized the pay packages given to the departing chief executives of Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE).

Obama told reporters that he wrote letters to Treasury Secretary Henry Paulson and Federal Housing Finance Agency Director James Lockhart stating that "it would be unacceptable for executives of these institutions to earn a windfall at a time when U.S. Treasury has taken unprecedented steps to rescue these companies with taxpayer resources," according to CNBC.

He's absolutely right.

Yes, I realize that compared with the fallen CEOs of Wall Street, the pay packages are chump change. Fannie Chief Executive Daniel Mudd is 'only' getting around $9.3 million and his counterpart at Freddie Mac Richard Syron stands to receive $14.1 million. But just because Mudd and Syron are getting less than 10% of the $160 million parting gift awarded to Stan O'Neal for ruining Merrill Lynch & Co. (NYSE: MER) does not make them any less egregious.

The New York Times reports that Freddie Mac (NYSE: FRE) CEO Richard Syron ignored warnings four years ago that Freddie was taking on too much risk by underwriting poor quality mortgages and that its capital base was too thin. Last week, the President signed a bailout bill that increases the national debt limit by $800 billion -- the potential size of the bailout of Fannie Mae (NYSE: FNM) and Freddie.

If the sources that the Times is quoting are right, the blame for Freddie's portion of that bailout rests with Syron. It interviewed Freddie Mac's former chief risk officer, David A. Andrukonis, who warned Syron that it was underwriting bad mortgages. According to the Times, Andrukonis "recalled telling Mr. Syron in mid-2004 that the company was buying bad loans that "would likely pose an enormous financial and reputational risk to the company and the country."

Syron claims that he received enormous pressure from an un-named lawmaker pushing Freddie to take on the bad loans. So the Times reports that as Syron and others sat in a conference room reviewing the memo, Syron "refused to consider possibilities for reducing Freddie Mac's risks. He said we couldn't afford to say no to anyone."

Executive compensation gone wild is nothing new, but it's worth looking at in the context of Freddie Mac, whose stock has tanked on a weak housing market and questions about the company's solvency. Rumors are swirling that the publicly traded quasi-semi-governmental agency will seek some kind of government bailout.

Fortune's Colin Barr examined the company's latest proxy statement and found some disturbing trends in management compensation: for 2007, CEO Richard Syron took home a $1.2 million salary, a $3.45 million cash bonus, and stock awards and misc. other of $10.6 million. That was up 24% from a year ago.

If Freddie decides to seek public funds, it will look laughably hypocritical. When it comes to CEO pay, this is a company that wants to operate like a private business but, when the going gets rough, it pulls the federal trump card. That's crap.

Think about it: any bailout will be indirectly supporting that eight-figure compensation. I think taxpayers deserve better than that and, before we contribute a penny or guarantee anything, Mr. Syron should take a large pay cut and invest his own money in any preferred/secondary offering the company pursues. Think that'll happen? One can dream ...