Fannie Mae chief: pay for nonperformance
Wednesday was a red letter day for Fannie Mae (FNM) chief Daniel Mudd, if not for the mortgage company’s beleaguered shareholders. Fannie shares fell 6% in trading Wednesday, and that was before Fannie put out a press release announcing Mudd’s 2007 pay. He made $990,000 last year in salary and took in a “performance bonus” of $2.2 million, along with a $9 million long-term incentive grant. Altogether Mudd pulled down $12.2 million, Fannie said - this in a year in which the company’s stock dropped 30%. That sounds like a nice deal for Mudd, though Fannie might point out that his pay actually dropped by $2.2 million from 2006 levels. That means his compensation took a smaller hit last year than did Fannie shareholders, but you can’t have everything. At least he didn’t get a big raise.
If you are a CEO, your pay check is guaranteed no matter how stinky and ugly your performance is.
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Huge pay for nonperformance, sign me up!