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

4 years 11 months 1 week ago Monday, December 10 2012 Dec 10, 2012 Monday, December 10, 2012 12:32:14 PM CST December 10, 2012 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 - The heavily traveled road Ballenger Lane has raised concern to homeowners and travelers due to its lack of... More >>
5 hours ago Tuesday, November 21 2017 Nov 21, 2017 Tuesday, November 21, 2017 2:20:00 AM CST November 21, 2017 in News
COLUMBIA - Columbia education leaders are concerned Gov. Eric Greitens is playing partisan politics with the state's board of education... More >>
8 hours ago Monday, November 20 2017 Nov 20, 2017 Monday, November 20, 2017 11:21:00 PM CST November 20, 2017 in News
BELLE - The mayor of Belle, who is also a volunteer firefighter, crashed into the back of an ambulance that... More >>
9 hours ago Monday, November 20 2017 Nov 20, 2017 Monday, November 20, 2017 10:32:54 PM CST November 20, 2017 in Target 8
BELLE - Abatement Officer Tony Baretich is under investigation for 13 complaints that were formally filed against him after he... More >>
11 hours ago Monday, November 20 2017 Nov 20, 2017 Monday, November 20, 2017 8:16:00 PM CST November 20, 2017 in News
COLUMBIA - The city council met Monday night to hear the Visitors Bureau proposal to change the city's current definition... More >>
13 hours ago Monday, November 20 2017 Nov 20, 2017 Monday, November 20, 2017 6:12:00 PM CST November 20, 2017 in News
JEFFERSON CITY - The state of Missouri has announced an increase to the state's minimum wage Monday. Businesses will... More >>
13 hours ago Monday, November 20 2017 Nov 20, 2017 Monday, November 20, 2017 6:01:00 PM CST November 20, 2017 in News
FULTON - Police arrested a woman after she allegedly attempted to steal a car from a shop, then broke into... More >>
16 hours ago Monday, November 20 2017 Nov 20, 2017 Monday, November 20, 2017 3:23:00 PM CST November 20, 2017 in News
COLUMBIA - Jack and Katie Hanney know probably better than anyone else that life can throw curve-balls when least expected.... More >>
16 hours ago Monday, November 20 2017 Nov 20, 2017 Monday, November 20, 2017 3:03:00 PM CST November 20, 2017 in News
COLUMBIA - Mayors from across Missouri met in Columbia Monday to discuss a variety of policies they say are negatively... More >>
17 hours ago Monday, November 20 2017 Nov 20, 2017 Monday, November 20, 2017 2:13:00 PM CST November 20, 2017 in News
COLUMBIA - As videos surface of package thieves targeting many neighborhoods, residents are talking about the need for security cameras.... More >>
17 hours ago Monday, November 20 2017 Nov 20, 2017 Monday, November 20, 2017 2:11:00 PM CST November 20, 2017 in News
COLUMBIA - The owner of the Broadway Hotel still plans to request a TIF from City Council for a $20... More >>
17 hours ago Monday, November 20 2017 Nov 20, 2017 Monday, November 20, 2017 2:00:00 PM CST November 20, 2017 in News
COLUMBIA - Prosecutors charged an inmate at the Boone County Jail with damaging the facility after he allegedly flushed his... More >>
18 hours ago Monday, November 20 2017 Nov 20, 2017 Monday, November 20, 2017 1:53:33 PM CST November 20, 2017 in News
ST. LOUIS (AP) — A federal investigation will look into possible civil rights violations by police in the St.... More >>
18 hours ago Monday, November 20 2017 Nov 20, 2017 Monday, November 20, 2017 1:44:00 PM CST November 20, 2017 in News
FAYETTE - The special prosecutor in the case against a woman accused of bullying a teenager has filed more charges,... More >>
18 hours ago Monday, November 20 2017 Nov 20, 2017 Monday, November 20, 2017 1:06:00 PM CST November 20, 2017 in News
COLUMBIA - With the holiday season upon us, more people will be traveling, and Columbia Regional Airport announced another way... More >>
19 hours ago Monday, November 20 2017 Nov 20, 2017 Monday, November 20, 2017 12:51:00 PM CST November 20, 2017 in News
SPRINGFIELD (AP) — The governor of Missouri has appointed 16 people to help review child abuse cases after the state... More >>
19 hours ago Monday, November 20 2017 Nov 20, 2017 Monday, November 20, 2017 12:35:38 PM CST November 20, 2017 in News
POTOSI (AP) — An eastern Missouri police officer has died following an off-duty accident. The Daily Journal newspaper in... More >>
20 hours ago Monday, November 20 2017 Nov 20, 2017 Monday, November 20, 2017 11:22:00 AM CST November 20, 2017 in News
MOBERLY - Authorities are investigating a possible explosion that led to a structure fire in Moberly Sunday night. The... More >>
21 hours ago Monday, November 20 2017 Nov 20, 2017 Monday, November 20, 2017 10:25:00 AM CST November 20, 2017 in News
Columbia, MO
Broken Clouds 40°
8am 44°
9am 47°
10am 49°
11am 51°

Select a station to view its upcoming schedule:

Coming Up Next

7:00a
Today
9:00a
Megyn Kelly TODAY
10:00a
Today with Kathie Lee & Hoda
7:00a
Maury
8:00a
The Steve Wilkos Show
9:00a
The Steve Wilkos Show

Tonight's Schedule

7:00p
The Voice
8:00p
This Is Us
9:01p
Chicago Med
7:00p
The Flash
8:00p
DC's Legends of Tomorrow
9:00p
KOMU 8 News @ Nine on The CW
9:30p
Seinfeld