Obama, McCain Agree: No Big Exit Packages for Fannie, Freddie CEOs
Posted Sep 10, 2008 11:40am EDT by Aaron Task in Investing, Newsmakers, BankingThey say politics make strange bedfellows, but it's really no surprise both John McCain and Barack Obama are protesting the pay packages due to the outgoing CEOs of Fannie Mae and Freddie Mac.
"It would be unacceptable for executives of these institutions to earn a windfall at a time when (the) U.S. Treasury has taken unprecedented steps to rescue these companies with taxpayer resources," Obama said.
While I wince at the term "windfall," it's hard to disagree with Obama's major point.
After collecting over $17 million since 2003, Freddie CEO Richard Syron is eligible to receive as much as $14 million in additional compensation. Fannie's Daniel Mudd is eligible for a $9.3 million "exit package" after pocketing $12.4 million in compensation since 2004.
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