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

7 years 9 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 – While high school football has been happening so far this season in the wake of COVID-19, one part... More >>
2 hours ago Saturday, September 19 2020 Sep 19, 2020 Saturday, September 19, 2020 6:47:00 PM CDT September 19, 2020 in News
COLUMBIA – Supreme Court Justice Ruth Bader Ginsburg left lifelong impressions on two Columbia students. The students, a high... More >>
2 hours ago Saturday, September 19 2020 Sep 19, 2020 Saturday, September 19, 2020 6:47:00 PM CDT September 19, 2020 in News
COLUMBIA - Monday night will likely be a long one for the Columbia City Council as it gets another... More >>
3 hours ago Saturday, September 19 2020 Sep 19, 2020 Saturday, September 19, 2020 6:14:00 PM CDT September 19, 2020 in News
SPRINGFIELD, Mo. (AP) — Authorities say a 19-year-old was fatally shot near the Missouri State University campus in Springfield. ... More >>
6 hours ago Saturday, September 19 2020 Sep 19, 2020 Saturday, September 19, 2020 2:46:00 PM CDT September 19, 2020 in News
As COVID-19 continues to spread, KOMU 8 will continue to update you about impacts in the community. Previous coverage: ... More >>
7 hours ago Saturday, September 19 2020 Sep 19, 2020 Saturday, September 19, 2020 2:14:00 PM CDT September 19, 2020 in News
COLUMBIA - No one was injured in an RV fire in southwest Columbia on Saturday. No injuries have been... More >>
8 hours ago Saturday, September 19 2020 Sep 19, 2020 Saturday, September 19, 2020 12:48:00 PM CDT September 19, 2020 in News
JEFFERSON CITY - A fire at a Jefferson City home displaced two people early Saturday morning. According to a... More >>
11 hours ago Saturday, September 19 2020 Sep 19, 2020 Saturday, September 19, 2020 9:43:00 AM CDT September 19, 2020 in News
(CNN) -- President Donald Trump hailed Supreme Court Justice Ruth Bader Ginsburg as a "brilliant mind" in a statement Friday... More >>
16 hours ago Saturday, September 19 2020 Sep 19, 2020 Saturday, September 19, 2020 5:00:00 AM CDT September 19, 2020 in News
(CNN) -- Supreme Court Justice Ruth Bader Ginsburg died on Friday , the court announced. She was 87. Ginsburg... More >>
1 day ago Friday, September 18 2020 Sep 18, 2020 Friday, September 18, 2020 6:43:00 PM CDT September 18, 2020 in News
(CNN) -- For a father and son, a hug before the first game of football season is a special moment.... More >>
1 day ago Friday, September 18 2020 Sep 18, 2020 Friday, September 18, 2020 6:23:00 PM CDT September 18, 2020 in News
Week four of Friday Night Fever has arrived. Before you head out to your team's game or tune in to... More >>
1 day ago Friday, September 18 2020 Sep 18, 2020 Friday, September 18, 2020 5:56:00 PM CDT September 18, 2020 in Friday Night Fever
Games for high school football games will become available below. Final scores are in bold and home teams are on... More >>
1 day ago Friday, September 18 2020 Sep 18, 2020 Friday, September 18, 2020 5:44:00 PM CDT September 18, 2020 in Friday Night Fever
Welcome to Week 4 of Friday Night Fever! Our game of the week features the Marshall Owls taking on the... More >>
1 day ago Friday, September 18 2020 Sep 18, 2020 Friday, September 18, 2020 5:43:00 PM CDT September 18, 2020 in Friday Night Fever
STOVER - COVID-19 is affecting young and old alike in Morgan County. According to the Morgan County Health Center... More >>
1 day ago Friday, September 18 2020 Sep 18, 2020 Friday, September 18, 2020 5:03:00 PM CDT September 18, 2020 in News
COLUMBIA — Battle High School canceled its game set for Friday against the Hickman High School Kewpies. Battle announced... More >>
1 day ago Friday, September 18 2020 Sep 18, 2020 Friday, September 18, 2020 3:14:00 PM CDT September 18, 2020 in Sports
NEAR CRANE, Mo. (KY3) - The Missouri Water Patrol is investigating a deadly crash killing a father and son from... More >>
1 day ago Friday, September 18 2020 Sep 18, 2020 Friday, September 18, 2020 2:00:00 PM CDT September 18, 2020 in News
MISSOURI- As COVID-19 continues to spread, KOMU 8 will continue to update you about impacts in the community. The... More >>
1 day ago Friday, September 18 2020 Sep 18, 2020 Friday, September 18, 2020 2:00:00 PM CDT September 18, 2020 in News
ST. LOUIS COUNTY, Mo. - As parents and student-athletes continue to protest the ban on some youth sports games... More >>
1 day ago Friday, September 18 2020 Sep 18, 2020 Friday, September 18, 2020 1:27:00 PM CDT September 18, 2020 in News
Columbia, MO
Broken Clouds 57°
10pm 55°
11pm 54°
12am 54°
1am 54°