An SEC filing yesterday divluged that Freddie Mac CEO Richard Syron was rewarded with almost $20 Million in compensation last year, even though the company as a whole took a beating and lost half it's value due to the the housing meltdown. Even as it's liquidity future is uncertain, he is still on tap to receive $8.8 million in stock grants. That is regardless of the company's fate. If he meets certain goals for 2008, he will automatically receive $20 million again. The breakdown for last year's earnings include
Salary - $1.2 Million
Bonus - $2.2 Million
Retention - $1.25 Million
Stock Options - $14.3 Million
Other Compensation - $771,585*
*Other compensation includes his financial planning expenses, car and driver for commute, home security system, business related travel and dining FOR HIS WIFE and a $100,000 legal fee for his employment negotiations.
Should Syron be terminated for his job without due cause, he would owe the company $1.25 Million. However, if he is fired with due cause, he will POCKET $19.5 Million. Freddie Mac is one of the 2 giant housing mortgage firms in the US, along with Fannie Mae. Combined, they are $5.3 Trillion in debt, comprising over half of all mortgage debt. The government announced before this filing disclosure that they are prepared to begin certain bailout procedures for one or both firms in attempts to further shore up the financial meltdown.
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Absolutely ridiculous IMO