Fannie, Freddie Pay Practices Need Scrutiny: Watchdog

Law360, New York (April 1, 2011, 2:07 PM EDT) -- Federal regulators Thursday criticized executives' pay practices at the crippled government-backed, mortgage-buying enterprises Fannie Mae and Freddie Mac, saying compensation criteria haven't been properly vetted.

Fannie Mae and Freddie Mac's CEOs were paid a total of $17 million in combined compensation in 2009 and 2010, but it was difficult to determine if that figure was fair, according to a report by the Federal Housing Finance Agency Office of Inspector General.

"FHFA has neither developed written procedures to evaluate the enterprises' recommended compensation levels each year, nor...
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