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4 Fannie Execs Each to Get $400K in Govt.-Okayed Bonuses

At least four Fannie Mae executives are slated to receive more than $400,000 in bonuses each this year as a result of the company's government-approved retention program, The Post's Zach Goldfarb reports.

The executives include chief operating officer Michael Williams ($611,000), deputy chief financial officer David Hisey ($517,000), and executive vice presidents Thomas Lund ($470,000) and Kenneth Bacon ($470,000).

Each of these executives earned about $200,000 in retention payments last year and salaries ranging from $385,000 to $676,000.

Fannie Mae's chief executive, Herbert M. Allison, did not receive any salary or retention payments. He received $60,000 in compensation related mostly to reimbursements.

Fannie Mae, which suffered $59 billion in losses last year, has requested $15 billion in taxpayer assistance, and has said it expects to need plenty more.

All major compensation decisions are authorized by Fannie Mae's federal regulator, the Federal Housing Finance Agency, which created a retention program when the company was seized last September to hold on to key employees.

Under the program, employees are eligible to receive up to 150 percent of their salary in bonuses this year, but many will receive far less than that, and some might receive zero, depending on how central they are deemed to the company's task.

The Federal Housing Finance Agency didn't immediately supply information on how much in bonuses would be given this year to Fannie Mae employees or whether they would be reevaluated after the controversy surrounding bonus payments at American International Group.

Freddie Mac has yet.to disclose its retention payments. It is expected to do so in the coming months, and its payments should resemble those at Fannie Mae.

-- Frank Ahrens
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By Frank Ahrens  |  March 18, 2009; 2:22 PM ET
Categories:  The Ticker  | Tags: Fannie Mae, Freddie Mac, bonuses  
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Comments

Kevin Bacon gets a bonus, too?

I thought this guy was too busy making movies to be ruining our economy?

Posted by: jimmyjimmy1 | March 18, 2009 3:14 PM | Report abuse

I wonder if these are the guys who oked the bribes to Dodd, Frank and Obama?

While we are taxing at 100% the bonuses for the AIG folks, lets take a serious look at the FM bonuses paid to Raines and Goreleick for running that operation into the crap hole.

Posted by: VirginiaConservative | March 18, 2009 3:31 PM | Report abuse

Oh, God, Allah, Jehova, Buddha, Krishna, what's become of America?!

Posted by: TalkingHead1 | March 18, 2009 3:33 PM | Report abuse

I don't get it... Bonus are to reward performance. No performance, no bonus. That is how it is supposed to work. This cr*p has got to stop!

Posted by: schenckg | March 18, 2009 3:51 PM | Report abuse

Obama and his incompetent administration knew about the AIG bonuses and gave them another $30 billion anyway.

Now we also learn that two crappy government companies are giving away bonus money. Is it any wonder that they make out so well with all their democrat connections (Chris Dodd, Barney Frank, etc.)?

Blago, Madoff, Stanford are all democrats and all crooks. They are just like the rest of them.

Posted by: bug45 | March 18, 2009 3:56 PM | Report abuse

This is bizarre- These people are making good salaries- what is it that they do that requires such outrageous bonuses.

How about if we promise them these bonuses after the compamy is back in the black for two years.

Posted by: peterdc | March 18, 2009 4:00 PM | Report abuse

Um... do you guys really think this is all happening by accident? Come on. The government is pulling a fast one on all of us. They are all in this together. Using our money to make everyone in Washington and Wall Street rich. Its time to simplify our lives and stop buying things we can't afford and using our credit cards. They want us to buy real estate so they can make us wage-slaves while they sit around and dick with us and our ability to support ourselves and our families. It's the feudal system all over again.

Posted by: luckyseven323 | March 18, 2009 4:07 PM | Report abuse

I am going to my boss right now and ask for a retention bonus too!!!!

Posted by: Ali927 | March 18, 2009 4:24 PM | Report abuse

Let's all sing now: "The House I Live In." What? No? How about: "Happy Days Are Here Again" or ............?

Posted by: rusty3 | March 18, 2009 4:26 PM | Report abuse

OK, here is the truth; these are government approved retention bonusus. I don't think so; we the people are the government. Not on my watch, take them out like AIG? Bring them in, slap them down, and make them give it back. Don't buy anything, Don't support the government, keep your money. Let them sweat the economy. Take your money out of the bank, stocks, etc., and hide it. We can stop this if we all pulol together.

Posted by: linda_521 | March 18, 2009 4:28 PM | Report abuse

Oh hell no!

Posted by: gladiatorgal | March 18, 2009 4:32 PM | Report abuse

Oh hell no! Any executive working for a company that received taxpayer bailout money gets a bonus if they can last a round in a boxing ring with a taxpayer.

Posted by: gladiatorgal | March 18, 2009 4:36 PM | Report abuse

Is this a joke??? Come on, who is approving this garbage? Why does this crud get reported after the fact? Their astronomical, merit less salaries aren't enough? These pigs make 150 times than the average American, and have done a terrible job, and for that they get a bonus! Where is the justice?

Posted by: castillomark | March 18, 2009 4:38 PM | Report abuse

Until we put the blame for this mess where it belongs the problems will never go away. It is the people we elect and send to Washington, DC that has caused, perpetuated and promotes the stealing of public tax dollars. Until the people in this country finally use their brains in the voting booth NOTHING will change.

Posted by: MikeJ9116 | March 18, 2009 4:39 PM | Report abuse

Why not? Like AIG employees, they too have a right to their share of blame in wrecking the World Economy with irresponsible risk management. So they need to be compensated accordingly.

Posted by: Troglodyte | March 18, 2009 4:48 PM | Report abuse

Why are these guys getting bonuses?

They've never done anything but spend taxpayer money! They're in an organization that can always make money, but are backed by the federal government against losses.

I can understand the risk of losing AIG employees - their loss could greatly increase financial losses.

As for the Fannie Mae clowns, it seems that they could be replaced in short order. Plus, their business is losing money hand over fist. It doesn't exactly warrant a bonus.

Seems like if a company makes money, it has to pay performance bonuses. If a company loses money, it still pays the bonuses, but they're called "retension bonuses".

Why?

And don't tell me that congress can't control this one.

Posted by: postfan1 | March 18, 2009 5:03 PM | Report abuse

How can the Obama administration want to tax AIG bonuses and give Fannie Mae bonuses? I cannot understand, one is the private sector and another government. Obama says people shouldn't get bonuses for running the businesses in the ground. What did these people do for Fannie Mae? Sounds like a government cover up already for the Obama administration.
The President can do nothing against the Fredies and Fannies, but can tax AIG.
How can this be?

Posted by: butchbarb | March 18, 2009 5:17 PM | Report abuse

OK Congress - now that you are going after AIG- go get bonuses back from Fannie May and Freddie Mac while your at it - right after you give up your $4,000 + raise you gave yourselves.

Posted by: derrill1 | March 18, 2009 5:21 PM | Report abuse

Sorry, retention bonuses.

Posted by: postfan1 | March 18, 2009 5:23 PM | Report abuse

When will the insanity stop???? Fannie Mae and Freddie Mac are failed companies. NO ONE at these institutions should be getting "retention" bonuses! These guys were either part of the failure or brought in to help fix it. I think that 200,000 is sufficient income for ANYONE. If these execs don't like that, then leave! There are plenty of financial people without jobs who would be happy to fill the slots. Business people are not, and never have been, the best and the brightest. We need to stop paying these greedy bloodsuckers once and for all. Business has been and is bad for America. It is primarily about greed and selfishness. The capitalist system needs to go --- it only serves the greedy, the wealthy and the evil. No proof is needed at this time thanks to AIG, Fannie Mae, et. al. Wake up America!

Posted by: bob2davis | March 18, 2009 5:26 PM | Report abuse

Where is Barney Frank's outrage for these bonuses? Barney loves the managers of Fannie and Freddie - quite literally!

Posted by: pgr88 | March 18, 2009 5:28 PM | Report abuse

I know this may sound simplistic, but how about if all bonuses for businesses taking taxpayer bail out money be suspended. If those that feel they are entitled get upset they can vote with their feet and someone else can take their job. God know's there are plenty of unemployed people that could do better than they have.

Posted by: prairiedog | March 18, 2009 5:29 PM | Report abuse

Wow. Last year they only got a $200,000 retention bonus.

It's worth twice as much to stay this year?

Isn't a retention bonus that's paid every year just a salary?

Posted by: postfan1 | March 18, 2009 5:29 PM | Report abuse

This is a classic example that nobody has read the bills (stimulus/bailout) in detail. Is there any shred of ethical, moral fabric left either in the law-makers or the people at the receiving end?

Obama has to break the news that the free reign on corporations should be over. Regulation should be brought in. Tell Americans that this economy is not coming back in the foreseeable future. Truth hurts. But having come this far, telling half truth is a joke and only delaying the further decay. Why is that the slightest increase in sales in February a glimmer of hope? Why should Wall Street be elated and cheer when layoffs and unemployment continue? It is idiocy at best. It is like cheering by selling, taking profit to the bank when houses are being burnt. Is this the capitalism that we call as the foundation of the nation. If so, this nation is at close to peril.

Posted by: mouli_7982 | March 18, 2009 5:31 PM | Report abuse

of course they get bonuses. they gave tons of money to bammie's campaign.

this nightmare will just get worse and worse.

how stupid can the American voter be.

Posted by: 2xy4k9 | March 18, 2009 6:08 PM | Report abuse

Wow, bonuses for the folks at Fan and Fred. Does Congressman Barney Frank get a bonus, too? After all, if it weren't for him protecting these jokers from more regulation and his failing to rein in their loan practices, all this housing meltdown probably wouldn't have happened. He's kept it all alive... Maybe they'll contribute to Barney's next campaign.

Posted by: SherlockHolmes | March 18, 2009 6:08 PM | Report abuse

I'd just like to remind everyone that those folks who, through no fault of their own, have been laid off because of this financial meltdown, are paying taxes on their unemployment checks so that these overpaid, underworked clowns can get their "retention bonus." If that doesn't shame our legislators, they have none. You can't throw money around and give a person back his dignity.

Posted by: brainfart007 | March 18, 2009 6:24 PM | Report abuse

Perhaps the Obama Nation can explain or set the example by returning the $101K in campaign contributions that ABC news reports it received from AIG.

No wonder they waited until AFTER the bonuses were given to express outrage.

More Kool-aid anyone?

Posted by: randy_boyd | March 18, 2009 6:24 PM | Report abuse

Why retention bonuses for failing corporate entities? Who is going to be hired with a resume that shows latest accomplishment running economy to the ground. Compensation for any company receiving federal assistance should be limited to GS15 on the OPM pay scale.

Posted by: NancyZ219 | March 18, 2009 6:28 PM | Report abuse

All of these guys are working extremely hard to get Fannie back on track. As a Fannie shareholder, I know I am getting my money's worth from each of them (this from a former employee of the company). This is not like giving bonuses to the guys at AIG, believe me.

Posted by: Arisb | March 18, 2009 6:28 PM | Report abuse

Someone must have just landed on this planet!!! Don't they know "bonuses" are out, especially when your operation loses hundreds of millions or billions of dollars.


Will someone please..... STOP the madness????

Posted by: gary44 | March 18, 2009 6:30 PM | Report abuse

This is Barney Franks pet project (or where he kept his pet) so you won't hear any "outrage" spewing from his froth covered lips.

Posted by: Ethicist | March 18, 2009 6:31 PM | Report abuse

Let's see......Dodd has received $165K from Freddie/Fannie, Obama $126K, Reid $77K and Pelosi $56K. Could there possibly be a connection? Naaaah. Couldn't be, could there?

Posted by: AkCoyote | March 18, 2009 6:37 PM | Report abuse

My goodness folks - They were scheduled to be paid. They will NOT be paid is my guess. All companies have a bonus schedule. Don't bank on them getting these. Save the "outrage" for when they have the nerve to do this. My guess is that that most definately won't!

Posted by: Julescator | March 18, 2009 6:43 PM | Report abuse

Just when I think that this administration can't do anything dumber-they do.

Posted by: thebink | March 18, 2009 6:44 PM | Report abuse

Our forefathers built this nation to avoid taxation without representation. We the people voted in this congress and no they are taking it in their OWN hands to do what the american people DON'T WANT them to do.. Revolution anyone?

Posted by: sher3 | March 18, 2009 6:45 PM | Report abuse

To stop the flow through contributions to congress etc. one must stop the flow at the start. Kill the bonuses!

Posted by: Berncro | March 18, 2009 6:49 PM | Report abuse

I highly recommend reading this article:

http://www.garynull.com/gnStimulusPlan.html

Please pass it on.

Posted by: lquatrella | March 18, 2009 6:53 PM | Report abuse

One word: hypocrisy

Posted by: thelaw1 | March 18, 2009 6:59 PM | Report abuse

I am not surprised to learn about this. American capitalism has rewarded those who make money using the hard-earned investments and savings of ordinary Americans. I do expect to hear about insider trading and dealing from other executives before this is over. Everytime I see a big opulent bank building, I wonder where the money comes from. Prudence does not seem to be part of the financial industry.

Posted by: EarlC | March 18, 2009 7:01 PM | Report abuse

What is the bonus for, getting money from the taxpayers. Just what kind of performance did these executives have to get bonuses? This is stupid, but it has been going on for years. Executives cook the books in order to receive bonuses illegally. When will our Government put a stop to this. Congress is as stupid and enabled as these executives are.

Posted by: rladdi | March 18, 2009 7:29 PM | Report abuse

Why would anyone call an organization Fannie? A fannie is a butt.

Posted by: Bitter_Bill | March 18, 2009 7:34 PM | Report abuse

What are their names?

Posted by: nychap44 | March 18, 2009 7:35 PM | Report abuse

Why are you asking the government to stop anything. They have no business giving taxpayers money out to anyone period. our government is out of control.

Posted by: hessone | March 18, 2009 7:39 PM | Report abuse

This is the change we voted for people. Bush was in with the oil companies and government contractors. Obama and the other Democrats are in with the bankers, insurance companies, and the lawyers. Before I thought Bush was bad pissing our money away, but Obama makes him look like the conservative he never was.

As far as American capitalism being blamed you’re wrong thelaw1. With the banks and Wall Street individuals chose to invest their money. If they lost money there it’s their own damn fault for not being wiser in their decisions. If your hard earned money is that important to you, you should be careful where you put it and accept that someone else will profit from taking care of it for you.

With our fabulous government we have no choice but to give them our hard earned cash and apparently no say in what they do with it. Unlike a bank or other investment we can’t withdraw it if we’re unhappy with how they handle it. I for one have not been happy with how they’re spending my dollars and for that matter my kids yet to be earned dollars.

If were able to choose between keeping all my money in a bank or letting the government take care of it I would choose the bank.

Come 2010 these jokers in congress will have to listen to me and come 2012 Mr. Obama will hear me. His little happy smile and well prepared speeches aren’t going to sway me. His actions these past two months have shown what kind of man he truly is, which is a lying prick.

Posted by: Batgeek | March 18, 2009 8:37 PM | Report abuse

I used to hire the officers at Freddie Mac. It was a complete waste of taxpayers money for spending so much on their skills. They way they upped officer compensation was to say that because an executive was overseeing a portfolio of 2 billion dollars, if he or she did that in the private sector, say Goldman Sach's etc, they would be worth a certain amount. However, that logic in is false. It is like saying if you are running the IRS and bring in a certain amount of tax dollars, your salary should reflect that. It was a complete sham, quite fraudulent in its compensation practices. Another tax payer waste is their subsidized cafeteria. it has to go.

Posted by: FreddieExecutiveRecruiter | March 22, 2009 8:23 PM | Report abuse

How many fall guys will it take till we really understand where this corruption is coming from. Didn't Obama get huge campaign contributions from AIG before the AIG bailout even went down...hmm...interestlng....
perhaps a scenario like...
"Mr. President...remember me?"
and now the government will decide to retrotax the AIG recipients 90 %...Interesting how Jay Leno expressed how concerned he was to the president last night "What if the government decides they don't like someone..now they can just tax them what they choose to?"
We better wake up ...I hope the blind followers will open their eyes to the truth....Let's get to the source... this may only be the beginning of the end of America as we know it unless we stop this...these people work for us....Good idea to Google the President's connection to Saul Alinsky.

Posted by: jjammer | March 23, 2009 12:54 AM | Report abuse

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