Senate Votes to Suspend Pay Raises for Fannie Mae, Freddie Mac CEOs

Fannie Mae

Fannie Mae / AP

BY:

The Senate voted this week to suspend massive pay raises the CEOs of Fannie Mae and Freddie Mac received in July.

The Washington Post reported:

On Tuesday, the Senate voted unanimously to approve a bill that would suspend the CEOs’ new annual target compensation of $4 million each, capping their pay again at $600,000. In doing so, it would return their compensation to the level set in 2012 following outrage over bonuses paid to executives at the companies, which had been bailed out by taxpayers and were in government conservatorship.

The new pay compensations for Donald Layton, CEO of Freddie Mac, and Timothy Mayopoulos, CEO of Fannie Mae, were approved by the Federal Housing Finance Agency and disclosed in July.

Mel Watt, director of the Federal Housing Finance Agency, said at the time that the pay hikes were supposed "to promote CEO retention, allow reliable succession planning, and ensure the continuity, efficiency, and stability of enterprise operations."

However, the raises will likely not hold. If the Senate bill passes the House, it will travel to President Obama’s desk. The president will likely sign the bill, as the White House has previously criticized the increases.

Morgan Chalfant   Email Morgan | Full Bio | RSS
Morgan Chalfant is a staff writer at the Washington Free Beacon. Prior to joining the Free Beacon, Morgan worked as a staff writer at Red Alert Politics. She also served as the year-long Collegiate Network fellow on the editorial page at USA TODAY from 2013-14. Morgan graduated from Boston College in 2013 with a B.A. in English and Mathematics. Her Twitter handle is @mchalfant16.

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