The business stories that matter, by Fortune's Colin Barr
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January 30, 2008, 5:09 pm

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.

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Colin Barr covers business and finance for Fortune.com. Previously he was an editor at TheStreet.com and author of the weekly Five Dumbest Things on Wall Street column, and an editor at Dow Jones Newswires.
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