November 17, 2015
Chief executives of Fannie Mae and Freddie Mac won’t be getting the raises they might have expected.
The U.S. House of Representatives has voted to suspend annual compensation of $4 million each for Freddie Mac CEO Donald Layton and Fannie Mae CEO Timothy Mayopoulos. Their salaries will now be capped at $600,000. President Obama is expected to sign the Fannie, Freddie bill, which has approval by both Democrats and Republicans.
The $600,000 cap initially went into place after strong reaction against the $17 million awarded to the Fannie and Freddie CEOs in 2009 and 2010. But a raise was proposed again this year, necessitating the new measure. The director of the Federal Housing Finance Agency argued that the larger checks helped the executives compete with the private sector, but a strongly united Congress feels differently.