Forget Execs: Fannie-Freddie Middle Managers Earn $205K+
About 1/6 of their workforce is making big bucks
By Kate Seamons, Newser Staff
Posted Dec 10, 2012 10:30 AM CST
Salaries are big at Fannie Mae.   (AP Photo/Manuel Balce Ceneta, File)

(Newser) – If wild executive pay makes your list of "things to be depressed about," steel yourself: A new report on Fannie Mae and Freddie Mac will add the non-executive class to your register of woes. The inspector general's report, out today, looks at the 2011 pay of senior but non-C-level employees, and found that at least 1,000 of them make more than $205,300 a year. Here's how the hefty pay breaks down:

  • The company has 333 vice president-level workers, whose median pay is $388,000 (meaning half get more than that, half get less); the median pay for its 62 senior VPs is $723,500

  • Another 1,650 director-level workers have a median salary of $205,300
  • All told, those employees make up one-sixth of the company
  • However, the Federal Housing Finance Agency maintains that "significant changes" to pay levels did occur, but were masked by deferred 2009 and 2010 pay that was paid out last year
The Wall Street Journal notes this is the first time non-executive pay at Fannie and Freddie has been disclosed. A Fannie Mae rep maintained that it "is absolutely critical that our compensation is competitive in the market." To wit, the Journal reports that the salaries at the taxpayer-owned housing giants are in line with similar positions in the private sector, but exceed those of most government workers.

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Showing 3 of 17 comments
whattodo
Dec 10, 2012 9:01 PM CST
If ANY Company ran their business the same way that Fannie & Freddie ran theirs, that Company (without Government bailout) would go out of business. This is the entire problem o0f Government putting money into businesses, yes it keeps people in jobs, but at what cost? Eventually as with these two Government funded Companies, the costs keep rising, the (dare I mention the word (Profit)) simply vanishes and all that these Companies become are an arm of subsidized Government Housing. Obama and his merry bunch of Marxist Socialists are simply unable to realize that in order for ANY Company to be successful that Company must make a profit. If he wants proof of this fact he should see what happened in Soviet Union, where those who were not producers consumed all the Profits the Producers produced, or look at Communist China where Companies that are OWNED by the Government are under strictures to be profitable or they are simply allowed to go under. Marxism or Capitalism demand exactly the same, Companies must be profitable in order to survive. In neither of these two countries were the unions permitted to break the back of any company.
odowd80
Dec 10, 2012 3:23 PM CST
According to this article, Fannie and Freddie execs are paid "nearly what is paid by private sector firms." So, they're paid less than their private sector counterparts. http://www.startribune.com/business/182831571.html?refer=y
odowd80
Dec 10, 2012 11:52 AM CST
How does their pay compare to their peers in the mortgage banking field?