Ex-Freddie Mac CEO Gets $24 Million Deal

Yahoo finance ^ | June 12 2003 | Bill Rigby

[Tauzero]

Reuters

Ex-Freddie Mac CEO Gets $24 Million Deal

Thursday June 12, 8:23 am ET
By Bill Rigby

NEW YORK (Reuters) - Leland Brendsel, who resigned as chairman and chief executive of Freddie Mac (NYSE:FRE - News) late last week, will get more than $24 million of stock, bonus and benefits, the U.S. No. 2 mortgage finance company says.

The generous leaving package, detailed Wednesday on Freddie Mac's Web Site, comes as the company faces criminal and regulatory probes, and is in the process of restating three years of earnings after problems surfaced in its accounting.

Brendsel, CEO of the company since 1987, can cash in $21.1 million in Freddie Mac stock grants and will get two years salary, worth $2.36 million. He will also get a bonus of $860,417 for the part of 2003 that he was employed and five years of life insurance and health care benefits.

The package is subject to approval by the Office of Federal Housing Enterprise Oversight, which regulates Freddie Mac.

President and Chief Operating Officer David Glenn, who was fired, forfeits $11.2 million in stock grants and will receive no new compensation, the company said.

Freddie Mac gave no details of compensation for Chief Financial Officer Vaughn Clarke, who also resigned late last week.

The publicly traded company, which is sponsored by the U.S. government, has been generous to its top executives in recent years.

It paid Brendsel $8.5 million in salary, bonus and other compensation in the three years 1999 to 2001 and awarded him almost $12 million worth of restricted stock, part of the awards he can now cash in.

It paid Glenn about $5.3 million for 1999 to 2001, plus about $6.2 million in restricted stock awards.

Freddie Mac, which details executive pay on its Web Site, has not filed any such information for 2002 or later.

[ken5050]

I'd say it's 1 to 10 he won't get it..there will be such a stink in Congress...

[kildak]

As a former Freddie Mac employee, I hope you're right!

[katze]

Sure hope you're right; from what I've read recently, that is a small portion of the fraud found. Every damned Govt program is riddled with fraud--I say stop them all. Read awhile back, there are more than 10,000 obscure Govt programs that few taxpayers even hear of.

[Hans]

We can hope.
The fantastic degree of 'self worth' that
appeared in the 80's and grew into the
monster that tried to eat the universe
in the 90's, is certainly still with us
in the new century. Only sending the louts to
jail will calm them down.

[Tauzero]

pong

[ken5050]

I'll go even further...because the board engaged in such an obvious misstatement..they'll all be out...that kind of crap won't fly anymore..the whole board is gone..and don't forget who runs the BIG fish..Fannie Mae...Clinton butt boy Franklin Raines.....I don't think he's gonna stay long either..the admin has been talking about this for some time..the problem is that markets are just starting to come back...they don't want to spook that...

[Wolfie]

Failing your way into a multi-million dollar golden parachute. My company has had 3 CEOS in the last 2 years. Each one dug the company a little deeper into a hole, and each left with millions. Good work if you can get it.

[LetsRok]

Sure hope you're right; from what I've read recently, that is a small portion of the fraud found.

There is NO FRAUD!! I currently work there. This is only an interpretation of accounting rules that arose from changing accounting firms. Under the revised earnings statements the company will report even higher earnings.

[Nachoman]

The CEOs get golden parachutes. The regular grunts get golden showers.

[katze]

Well, I guess I'll have to read it again--if no problem, why in the news? Way back when I was reviewing contractor proposals, one of the larger appeared to be overcharging; I told them, "well, if you're not cheating the Govt, get rid of the appearance"; they did, and the oddest thing, the price per unit decreased dramatically.

[SierraWasp]

From http://bigcharts.marketwatch.com

12:02PM Brokers hold slimmest gain, banks dip ($XBD, $BKX) by Greg Morcroft

U.S. financial stocks remained weak at midday. Investors appeared uninspired as they digested the latest economic data, which revealed a still-soft job market, a small jump in retail sales, rising business inventories and falling import prices. The AMEX Securities Broker/Dealer Index ($XBD) held on to a 0.1 percent gain while the Philadelphia Bank Sector Index ($BKX) slid 0.3 percent. Among stocks in the news, H&R Block (HRB) shares fell 5.2 percent following a weak earnings report Wednesday. Freddie Mac (FRE) shares fell another 5.6 percent amid continuing fallout from its revelation Monday of accounting irregularities and the departure of several top executives.

[lelio]

This is only an interpretation of accounting rules that arose from changing accounting firms.
If its true that this would raise your earnings, why was the COO not cooperating with the inquiry? Something's rotten in Denmark.

[Digger]

don't forget who runs the BIG fish..Fannie Mae...Clinton butt boy Franklin Raines

Doesn't it bother you FReepers that GW left all of Bubba's people still running much of the government?? Not to mention the Klintoons with their free ride? Yep, the "Two-Party Cartel" does protect itself. You've been duped & lov'in it all the way to the polls next election.

[katze]

"from its revelation Monday of accounting irregularities and the departure of several top executives."

Thank you. Sounds like the old "creative accounting method" that same use until they gt caught.