Tags: US | Freddie | Mac | Executive | Compensation

New Freddie Mac CEO Earned $800,000 Last Year

Tuesday, 13 Apr 2010 06:56 AM

The chief executive of Freddie Mac earned nearly $800,000 last year after being hired in late summer to run the government controlled mortgage finance company.

Charles Haldeman, 61, who started as CEO of the McLean, Va.-based mortgage finance giant last August, received 2009 compensation valued at $798,928, according to a proxy statement filed Monday with the Securities and Exchange Commission.

That does not include more than $1.3 million in deferred salary that will be paid out over this year.

Freddie Mac had three chief executives in 2009. Former CEO David Moffett, who resigned last March, received compensation worth $512,864. He was replaced on an interim basis by the company's chairman John Koskinen, 70, who received compensation valued at $550,713.

Salaries for executives at McLean, Va.-based Freddie Mac and sibling company Fannie Mae have been a contentious issue on Capitol Hill, with Republican lawmakers calling them a waste of taxpayer dollars. The companies' regulator, the Federal Housing Finance Agency, has defended the salaries, saying they were necessary to attract seasoned executives.

Haldeman was formerly chairman of mutual fund firm Putnam Investment Management

The Associated Press formula is designed to isolate the value the company's board placed on the executive's total compensation package during the last fiscal year. It includes salary, bonus, performance-related bonuses, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year.

The calculations don't include changes in the present value of pension benefits, making the AP total different in most cases than the totals reported by companies to the SEC.

Freddie Mac lost almost $26 billion last year and has racked up almost $80 billion in losses since the housing crisis started. Along with Washington-based sibling Fannie Mae, Freddie Mac buys mortgages from lenders and package them into bonds that are resold to global investors.

As the housing bubble burst, Freddie Mac and Fannie Mae were unable to raise enough money to stay afloat, and the government effectively nationalized them in September 2008. That has cost taxpayers about $126 billion so far.

The role of Fannie and Freddie in the mortgage crisis is hotly debated in Washington. Republicans say the two companies, with the government's encouragement, deserve most of the blame for inflating the housing bubble.

But Democrats say Wall Street players were the primary culprits behind shady lending practices that led to the mortgage bust. They argue that a lack of national lending standards allowed shady players to make irresponsible home loans.

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The chief executive of Freddie Mac earned nearly $800,000 last year after being hired in late summer to run the government controlled mortgage finance company.Charles Haldeman, 61, who started as CEO of the McLean, Va.-based mortgage finance giant last August, received 2009...
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2010-56-13
Tuesday, 13 Apr 2010 06:56 AM
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