Daniel H. Mudd, chief executive of Fannie Mae, isn’t getting a raise this year, but he is getting a bonus, the company reported Wednesday.
President and CEO Daniel Mudd will continue to get his base salary of $950,000 in 2006 and he was granted a cash bonus of $2.59 million for his 2005 performance, Fannie Mae said.
Mudd was also awarded an estimated $8 million in restricted stock as a “2005 Variable Long-Term Incentive Award,” according to the filing with the U.S. Securities and Exchange Commission.
The government-sponsored enterprise’s top five executives were granted a total of more than $28 million in 2006 salaries and regulator-approved 2005 cash and stock bonuses, according to the regulatory filing.
Fannie Mae’s main regulator, the Office of Federal Housing Enterprise Oversight, approved all of the non-salary compensation decisions as required as part of the company’s capital restoration plan, the filing said.
Other executives granted multimillion-dollar 2006 salary and 2005 cash and restricted share bonus packages include Executive Vice President and Chief Business Officer Robert Levin, Executive Vice President and Chief Operating Officer Michael Williams, Executive Vice President-Mortgage Portfolio Business Peter Niculescu and Executive Vice President and Chief Information Officer Julie St. John.
Last November, the mortgage giant announced that it had increased Mudd’s base salary to $950,000 from $850,000, reports said. This base salary is subject to review and possible increases, but not decreases, according to reports. Mudd’s base salary will remain the same.
The board also raised Mudd’s annual cash bonus target award to 275 percent of base salary, or $2.6 million at the new salary level, from 235 percent of base salary, reports said
The government-sponsored housing enterprise has been rebuilding its management team since ousting the chief executive and chief financial officers last year as accounting problems surfaced.
In December 2004, Fannie Mae replaced Franklin Raines, its chairman and CEO, who announced he was taking early retirement, and Fannie Mae’s chief financial officer, Timothy Howard, resigned Dec. 21.
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