FHFA's Lockhart Defends Retention Pay At Fannie, Freddie
March 18 2009 - 2:23PM
Dow Jones News
The regulator for Fannie Mae (FNM) and Freddie Mac (FRE)
defended the retention pay promised to key employees after the
mortgage giants were seized by the government.
"These institutions are so important to the United States at
this point," Federal Housing Finance Agency Director James B.
Lockhart said Wednesday. "We have to make sure that the people who
are there are doing the job."
When it took over the mortgage giants in September, the
government threw out their chief executives and their boards.
Several top executives left the firms in the following weeks and
months. David Moffett, who was installed as chief executive of
Freddie after the takeover, stepped down in February after just a
few months in the job.
Lockhart noted that pay generally has declined sharply at the
companies, with many employees earning half of what they owned
before the firms were put into conservatorship.
"My view is that we have to be careful and not give excessive
compensation," he said.
-Jessica Holzer, Dow Jones Newswires; 202-862-9228;
jessica.holzer@dowjones.com