No Golden Parachutes for Fannie and Freddie Bosses

September 15, 2008 No Comments »

parachute

It seems these days, no matter how poorly your company performs, you still end up walking away a winner if you’re the boss.

But now former Fannie Mae and Freddie Mac CEOs Daniel Mudd and Richard Syron will see their severance challenged by their new regulator, the Federal Housing Finance Agency.

In a statement released Sunday, the agency said it had informed the pair that they would not receive their so-called “golden parachute” payments.

According to the Washington Post, the severance packages could be worth up to $14.9 million for Syron and $9.8 million for Mudd.

However, it’s unclear how much of that is considered part of the “golden parachute” and what the FHFA actually intends to block.

Last year, the pair claimed about $30 million in compensation, including $18.3 million to Syron and $11.6 million to Mudd.

The loss of severance will be a big blow to the former execs, as shares of Fannie and Freddie are now essentially worthless, currently trading between 40 and 65 cents each.

Back in January, mortgage lender Countrywide’s former boss Angelo Mozilo decided to forego his $37.5 million severance package after pocketing hundreds of millions in stock options before the mortgage lender’s performance began to deteriorate.

(photo: nickstone333)

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