Report: Mgrs. at Fannie, Freddie Earned $200K

3 years ago December 10, 2012 Dec 10, 2012 Monday, December 10 2012 Monday, December 10, 2012 12:32:14 PM CST in News
By: Associated Press

WASHINGTON (AP) - A government report finds median pay for nearly 2,000 senior managers at government-controlled Fannie Mae and Freddie Mac exceeded $200,000 last year.

The Federal Housing Finance Agency, which oversees the two mortgage giants, also did an inadequate job monitoring pay, according to the report released Monday from the inspector general for the FHFA.

The median figure means that half the managers received salaries above $200,000 and half received less.

Those managers represent nearly 17 percent of the roughly 11,900 total employees at the two bailed-out companies. Compensation for senior managers at the companies cost about $455 million in 2011, according to the report.

The report also says the top 333 of those managers are vice presidents who had median pay of $388,000. That's close to salaries paid by private financial firms and exceeds pay for similar jobs at federal agencies.

Because the FHFA doesn't closely evaluate the compensation of senior managers, it is unable "to ensure that the costs associated with senior professional compensation are warranted," the report says.

The FHFA said Monday that it agreed with the inspector general's conclusion that it should improve its oversight of senior managers' pay. The FHFA said it plans to make a full review.

Taxpayers so far have paid roughly $170 billion to rescue Fannie and Freddie, which suffered huge losses from risky mortgages during the 2008 financial crisis.

Under pressure from Congress, the FHFA earlier this year capped pay for Fannie and Freddie's CEOs at $500,000 a year. The agency also cut pay for about 50 other executives, who were earning more than the companies' senior managers looked at in the latest report.

In December 2010, the agency imposed a freeze on merit pay increases and cost of living adjustments for all Fannie and Freddie employees in 2011. It later was extended to cover 2012.

The agency and the two companies have said that the relatively high levels of compensation are needed to attract and keep qualified employees.

"There's a lot at stake for our country and it is absolutely critical that Fannie Mae compensation is competitive in the market for financial services talent," Fannie spokeswoman Kelli Parsons said in a statement Monday.

Compensation for Fannie employees has declined "substantially" from the levels of pay before the government takeover, Parsons said.

Spokesmen for Freddie had no immediate comment.

More News

Grid
List
COLUMBIA - Boone Hospital Nifong Medical Plaza opened its doors for the first time Monday in south Columbia. The... More >>
2 days ago February 05, 2016 Feb 5, 2016 Friday, February 05 2016 Friday, February 05, 2016 6:31:07 PM CST in Continuous News
ST. LOUIS (AP) — Federal agents in St. Louis say security cameras helped lead to the arrest of a serial... More >>
1 hour ago February 08, 2016 Feb 8, 2016 Monday, February 08 2016 Monday, February 08, 2016 7:23:36 AM CST in Continuous News
SPRINGFIELD (AP) — Authorities are investigating a fatal shooting in southwest Missouri. Police said in a news release... More >>
1 hour ago February 08, 2016 Feb 8, 2016 Monday, February 08 2016 Monday, February 08, 2016 7:18:42 AM CST in Continuous News
KIRKWOOD (AP) — A Rock Hill police officer has been taken to a hospital after being struck by a vehicle.... More >>
1 hour ago February 08, 2016 Feb 8, 2016 Monday, February 08 2016 Monday, February 08, 2016 7:15:55 AM CST in Continuous News
KANSAS CITY (AP) — A 29-year-old man accused in the January shooting death of another man in Kansas City has... More >>
3 hours ago February 08, 2016 Feb 8, 2016 Monday, February 08 2016 Monday, February 08, 2016 5:20:17 AM CST in Continuous News
FULTON - The Callaway County Sheriff's Office arrested a man early Sunday morning after actively seeking him for two warrants... More >>
13 hours ago February 07, 2016 Feb 7, 2016 Sunday, February 07 2016 Sunday, February 07, 2016 7:25:50 PM CST in Continuous News
JEFFERSON CITY - Ranked 47th in the nation by Business Insider, Missouri’s seemingly stagnant economy has been a talking point... More >>
13 hours ago February 07, 2016 Feb 7, 2016 Sunday, February 07 2016 Sunday, February 07, 2016 7:16:13 PM CST in Continuous News
KIRKWOOD, Mo. (AP) — A St. Louis area police officer has been hospitalized after being hit by a car. ... More >>
14 hours ago February 07, 2016 Feb 7, 2016 Sunday, February 07 2016 Sunday, February 07, 2016 5:41:49 PM CST in Continuous News
COLUMBIA - Grocery stores see an increase in customers during Super Bowl weekend. The National Retail Federation reports total customer... More >>
15 hours ago February 07, 2016 Feb 7, 2016 Sunday, February 07 2016 Sunday, February 07, 2016 4:51:48 PM CST in Continuous News
RAYTOWN, Mo. (AP) — An early morning fire in a Kansas City area apartment has killed a child and injured... More >>
17 hours ago February 07, 2016 Feb 7, 2016 Sunday, February 07 2016 Sunday, February 07, 2016 3:01:02 PM CST in Continuous News
ST. LOUIS (AP) — The new leader of the Missouri State NAACP says he plans to build a younger, more... More >>
17 hours ago February 07, 2016 Feb 7, 2016 Sunday, February 07 2016 Sunday, February 07, 2016 2:47:03 PM CST in Continuous News
JEFFERSON CITY (AP) — A Jefferson City man has b een placed on unsupervised probation after he pleaded guilty to... More >>
18 hours ago February 07, 2016 Feb 7, 2016 Sunday, February 07 2016 Sunday, February 07, 2016 1:37:31 PM CST in Continuous News
ST. LOUIS (AP) — A second-floor porch in St. Louis collapsed, injuring five people, two seriously. Fire Department Capt.... More >>
18 hours ago February 07, 2016 Feb 7, 2016 Sunday, February 07 2016 Sunday, February 07, 2016 1:31:14 PM CST in Continuous News
JEFFERSON CITY (AP) — Missouri state Rep. Genise Montecillo is talking about her suicide attempt in hopes of helping others... More >>
19 hours ago February 07, 2016 Feb 7, 2016 Sunday, February 07 2016 Sunday, February 07, 2016 1:22:48 PM CST in Continuous News
COLUMBIA - Some Columbia pizza companies deliver hundreds of pizza on Superbowl Sunday with as few as three drivers. ... More >>
19 hours ago February 07, 2016 Feb 7, 2016 Sunday, February 07 2016 Sunday, February 07, 2016 1:07:46 PM CST in Continuous News
COLUMBIA - Columbia police arrested two men Sunday for stealing from West Middle School. Officers along with a CPD... More >>
20 hours ago February 07, 2016 Feb 7, 2016 Sunday, February 07 2016 Sunday, February 07, 2016 12:00:28 PM CST in Continuous News
COLUMBIA - Columbia police confirmed reports of shots fired in north Columbia early Sunday morning. Officers were dispatched to... More >>
20 hours ago February 07, 2016 Feb 7, 2016 Sunday, February 07 2016 Sunday, February 07, 2016 11:35:02 AM CST in Continuous News
COLUMBIA - The third annual Black Men Rock event at Columbia College honored leaders in the black community Saturday afternoon.... More >>
1 day ago February 06, 2016 Feb 6, 2016 Saturday, February 06 2016 Saturday, February 06, 2016 6:54:12 PM CST in Continuous News
Interactive Radar Columbia, MO
Broken Clouds 27°
9am 27°
10am 28°
11am 28°
12pm 27°
Select a station to view its upcoming show schedule: KOMU 8 CW Mid-Missouri's CW

Coming Up Next

7:00 amToday
11:00 amRachael Ray
12:00 pmKOMU 8 News @ Noon

Tonight's Schedule

7:00 pmSuperstore
7:30 pmTelenovela
8:00 pmThe Biggest Loser

Coming Up Next

8:00 amThe Steve Wilkos Show
9:00 amThe Steve Wilkos Show
10:00 amCrazy Talk

Tonight's Schedule

7:00 pmCrazy Ex-Girlfriend
8:00 pmJane the Virgin
9:00 pmKOMU 8 News @ Nine on The CW
9:30 pmSeinfeld