Wednesday, December 13, 2017
Business

Pay cap set for executives of mortgage giants Fannie Mae, Freddie Mac

WASHINGTON — The government is capping pay for Fannie Mae and Freddie Mac executives at $500,000 per year and eliminating annual bonuses, giving in to pressure from Congress to stop big payouts at the bailed-out mortgage giants.

The pay cap will apply to 70 executives at the companies, although not all of them will earn the top salary.

The pay and bonus structure of the government-controlled mortgage giants came under fire last fall after it was revealed that 12 executives got $35.4 million in salary and bonuses in 2009 and 2010. Fannie's chief executive, Michael J. Williams, received about $9.3 million for the two years. Freddie's chief executive, Edward Haldeman Jr., was paid $7.8 million.

Republican lawmakers welcomed the cap, noting that pay at mortgage companies should be more in line with government salaries. But administration officials said such limits will make it harder to attract talent because executives could earn far more in comparable jobs on Wall Street.

There's no start date in place for the cap. Haldeman and Williams will each be paid $5.4 million this year. But Haldeman and Williams are leaving their positions this year, and officials say the cap will be applied to their replacements' salaries.

The government rescued Fannie and Freddie three years ago after they nearly folded because of big losses on risky mortgages. Taxpayers have spent about $170 billion to prop up the companies, the most expensive bailout of the 2008 financial crisis.

Fannie and Freddie executives receive salaries, bonuses and other forms of compensation for their work, including deferred salary, which is tied to the company's performance and is usually paid after one year with the companies. Under the cap, Fannie and Freddie executives will be paid about 50 percent less than the median salary of comparable positions for big private financial firms, including Bank of America, Citigroup, JPMorgan Chase and Wells Fargo, the government says.

Comments
Career Q&A: Two bosses who don’t care for each other

Career Q&A: Two bosses who don’t care for each other

Q: I seem to be caught between two high-level managers who really don’t like each other. One is a director, the other is a vice president, and I am an assistant to both. Whenever the director stops by my desk to chat, she makes critical remarks about...
Updated: 3 hours ago
Nicko’s Fine Foods, classic diner and Seminole Heights icon, closes after six decades

Nicko’s Fine Foods, classic diner and Seminole Heights icon, closes after six decades

Nicko’s Fine Foods, known as the place Elvis Presley ate following a 1956 concert and Tampa’s last classic prefabricated diner, has shut down after more than 60 years in business.Owners Karen and Nicholas Liakos could not be reached for comment, but ...
Updated: 5 hours ago
Ex-Facebook VP: Social media destroying society with ‘dopamine-driven feedback loops’

Ex-Facebook VP: Social media destroying society with ‘dopamine-driven feedback loops’

Washington PostA former Facebook executive is making waves after he spoke out about his "tremendous guilt" over growing the social network, which he feels has eroded "the core foundations of how people behave by and between each other."Chamath Paliha...
Updated: 7 hours ago
Illegal card skimmer discoveries in Tampa Bay double in 2017

Illegal card skimmer discoveries in Tampa Bay double in 2017

State investigators have discovered more than double the number of credit card skimmers in the Tampa Bay area in 2017 than in 2016 — with still a few weeks left in the year. The Florida Department of Agriculture and Consumer Services found 54 skimmer...
Updated: 8 hours ago
French group to take over Westfield malls for $15.7 billion

French group to take over Westfield malls for $15.7 billion

Three Tampa Bay malls may soon be under new management. French real estate company Unibail-Rodamco has agreed to buy Australia-based shopping mall operator Westfield Corp. for $15.7 billion in cash and shares."Westfield would arguably be the best or ...
Updated: 8 hours ago
Tampa Bay’s mortgage delinquency rate crept up in September

Tampa Bay’s mortgage delinquency rate crept up in September

Times Staff WriterThe percentage of Tampa Bay homeowners who are late on their mortgage payments rose slightly in September, probably due to Hurricane Irma. According to CoreLogic, 7 percent of bay area mortgages were delinquent by at least 30 days c...
Updated: 9 hours ago
Unusual paddle design earns worldwide market

Unusual paddle design earns worldwide market

Paddling on the heels of the last supermoon of 2017, Phil Hughes navigated an uncommonly low tide off Dunedin through St. Joseph Sound on an effortless but lengthy glide.This is not easy water, nor an easy paddle, and could be especially daunting for...
Updated: 11 hours ago
Punit Shah’s Liberty Group building new Channel District hotel with Jameis Winston as limited investor

Punit Shah’s Liberty Group building new Channel District hotel with Jameis Winston as limited investor

TAMPA — Punit Shah’s Liberty Group announced plans Tuesday to start construction in January on a Channel District project that will include a Hampton Inn and Home2 Suites, both by Hilton, plus a Starbucks Coffee.Financing for the $40 million project ...
Published: 12/12/17
Creating PDQ from scratch: CEO of growing brand came from Bucs’ front office

Creating PDQ from scratch: CEO of growing brand came from Bucs’ front office

Shortly after leaving his job as chief financial officer of the Tampa Bay Buccaneers to strike out on his own as an entrepreneur, Nick Reader wondered if he’d made the right move. "I probably had one of the coolest jobs in Tampa," said Reader, 42. Si...
Published: 12/12/17
Driven by demand, Planned Parenthood opens second clinic in Tampa

Driven by demand, Planned Parenthood opens second clinic in Tampa

The floor-to-ceiling glass windows are heavily tinted and the inside is hidden behind rows of curtains. Security cameras monitor every corner, and only patients with an appointment and valid identification can pass through the intentionally cramped e...
Published: 12/12/17