A federal watchdog criticises federal regulators overseeing executive pay packages for top officials at Fannie Mae and Freddie Mac in a report published Thursday.
Agency top six executives at the mortgage Giants earned $ 35 million in the last two years, according to the report of the Inspector General of the federal housing finance, which governs the mortgage giants.
The company was taken over by the Government in 2008 and have cost taxpayers $ 134 billion. Both companies have seen heavy turnover in the senior ranks.
Freddie Mac Chief Executive Charles E. Haldeman Jr. became the fourth person at the head of the society in a 12-month period in 2009, Freddie Mac. Michael Williams, a veteran of Fannie Mae, took the top job at the company in 2009.
The report criticized the Government not to check whether certain goals performance-related compensation adequately met the company.
It incorrectly even government regulators for testing non-comparable public wages when evaluating the pay deals. The report recommended that regulators where salaries at less than $ 200,000 consider the salaries of employees in the public service in government agencies such as Ginnie Mae and the housing federal administration, from max. The Director of the free trade agreement last month stepped down to take a job in the private sector.
Bill an earlier of this week, the compensation levels when the company slash would Republican legislators, replacing with federal pay scales. Edward DeMarco, the Managing Director of FHFA, Thursday warned that the "Disruptiveness" of such a change more difficult can make it for the Government to restore the value of their investment in the company.
"The Government enormous exposure here on $5 trillion in mortgage-backed securities has," he said. "I would like to ensure that we humans manage,... have qualified for the taxpayer."
The FHFA conceded that the remuneration packages of "Importance" are, the report said, but said that they remain 40% below the level before the Government which took over the company.
The Ministry of finance and the FHFA in 2009 approved pay packages, the long-term deferred compensation and bonuses pay millions in bar, allow first of all, because the company shares became worthless after the takeover of the Government.
Kenneth Feinberg, who was at the time of the Treasury Department "Pay czar", had consulted regulators on these decisions and defends the packages given the "unique problems" of the companies.
But the Inspector General report said State support "may have exaggerated companies the degree" that could achieve certain performance-based targets the executives. The report criticized also federal regulators not to offer supervision "sufficient transparency", as the pay packages are structured.
A written response to the report of the FHFA said that current federal filings "excellent information about executive pay." The Agency said that it provide better test would determine had taken as good managers performance-related targets.
Write to Nick Timiraos at nick.timiraos@wsj.com
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