Performance Bonus? Top Officials at Bailed out Fannie and Freddie Rake in Millions

[seafan]

Performance Bonus? Top Officials at Bailed out Fannie and Freddie Rake in Millions

By Ken Silverstein
July 28, 2008

Today the Washington Post published its annual survey of executive compensation, and reported that while the Washington, D.C., area’s “growing financial sector was one of the first to feel the effects of the year-long slide that grew out of the mortgage mess… most financial firms saw their stocks wither, the industry’s top executives continue to be among the best paid in the region.”

Ten of the 100 top-paid executives came from Fannie Mae or Freddie Mac, including the chairman of the latter, Richard F. Syron, who took in $14.5 million in 2007, including a $2.2 million performance bonus. Meanwhile, Freddie Mac’s stock “dropped by about half in 2007, destroying billions in shareholder value.”

The Post quoted a speech on the House floor last week by Congressman Sam Johnson, a Texas Republican, who said, “Why should taxpayers foot the bill to prop up those former giants when the company CEOs rake in a bundle and continue to do so? It’s privatized profits and socialized risk…. Everyone knows I’m a strong supporter of freedom and free enterprise, but this is ridiculous. The lack of accountability and responsibility is astounding.”

That came out of a Republican's mouth? Will wonders never cease....




From the Washington Post link above:

.....

The biggest winners were executives at Lockheed Martin. Robert J. Stevens, the Bethesda defense contractor's chairman, president and chief executive, earned $26 million last year, of which $14 million was in cash payments from salary, bonus and incentive plans.

"Since 2005, our stock has increased 65 percent and since 2003, it has increased 105 percent," Jeffery Adams, a Lockheed spokesman, wrote in an e-mail. "For the three-year period 2005-2007, our market capitalization increased by $19 billion . . . if our named executive officers keep producing superior results, they will continue to be highly paid."

The six highest-earning Lockheed executives were paid a total of $52.8 million last year. That is equal to about 8 percent of the $615 million in gross dividends that Lockheed paid to its shareholders in 2007. The $52.8 million also represents 1 percent of the $5 billion that Lockheed Martin generated for its shareholders last year in dividends and capital appreciation, according to the company.

.....

Devoid of all moral conscience, George W. Bush's illegal invasion and occupation of Iraq made these robbers filthy rich. Mission accomplished. Now these criminals can waltz out of office in January with smiles on their faces.

"We must stop the terror. I call upon all nations, to do everything they can to stop these terrorist killers. Thank you. "Now, watch this drive." ----August, 2002

[grannie4peace]

1. yeah...

that's exactly what i told bush's answer line!! everyone!!!!-- call the white house 202 456-1111. i told them if bush signed that bill he needed to put in a signing statement he's so famous for, that the bonuses would all be revoked & given back to the taxpayers. i asked do you know what i mean & she said yes she did--- they are all such ***wipes -:rant: :rant: :rant: :cry:

[LiberalEsto]

2. The plan is working

Mudd, a Republican, was set up as CEO of Fannie Mae as part of the rethug/neocon plan to destroy Fannie and other programs created by Roosevelt's New Deal.

Naturally he's being rewarded for doing what he was told to do.

[marmar]

3. The American kleptocracy.....

n/t