Fannie Mae 2010 Annual Report Download - page 218

Named Executive
2010 Base
Salary Rate Target
Actual Amount
Approved to be
Paid in 2011
(1)
Target
Actual Amount
Approved to be
Paid in 2011
Percentage
of Target
2010 Long-Term Incentive Award
(First Installment Only)
(2)
2010 Deferred Pay
Michael Williams ................... $900,000 $3,100,000 $2,945,000 $1,000,000 $900,000 90%
David Hisey. . . .................... 425,000 1,045,000 992,750 365,000 325,000 89
David Johnson
(3)
.................... 650,000 1,700,000 — 575,000 — —
David Benson . .................... 500,000 1,369,667 1,301,184 465,167 440,000 95
Terence Edwards ................... 500,000 1,369,667 1,301,184 465,167 420,000 90
Timothy Mayopoulos . . ............... 500,000 1,469,667 1,396,184 490,167 485,000 99
(1)
Target 2010 deferred pay is 50% service-based and 50% corporate performance-based. The Compensation Committee
determined that the corporate performance-based portion of 2010 deferred pay would be paid at 90% of target.
(2)
Amounts do not include the second installment of each named executive’s 2010 long-term incentive award. For each
named executive, the target amount for the second installment of the award is the same as the target for the first
installment of the award. The amount of the second installment that will actually be paid to each named executive
will be determined and paid in 2012 based on an assessment of 2010 and 2011 corporate and individual performance.
(3)
Mr. Johnson left the company in December 2010 and therefore will not receive 2010 deferred pay or payment of a
2010 long-term incentive award.
2010 Corporate Performance Goals and Assessment of 2010 Corporate Performance
In May 2010, the Board established, and FHFA approved, 2010 corporate performance goals for the
performance-based portion of deferred pay and for the first installment of the 2010 long-term incentive award,
as well as continuing two-year (2010 and 2011) corporate performance goals for the second installment of the
2010 long-term incentive award. The Board did not assign any relative weight to the goals and the
Compensation Committee may consider other factors in addition to the goals in assessing corporate
performance.
In December 2010 and January 2011, the Compensation Committee reviewed our performance against each of
our 2010 performance goals and related subgoals to determine the funding of the pool for the first installment
of the 2010 long-term incentive awards for the named executives and the amounts of the performance-based
portion of 2010 deferred pay for the named executives. In conducting its review, the Compensation Committee
took into consideration the views of the Committee members and its objective to correlate compensation with
performance, the views of FHFA, management’s assessment of the company’s performance against the goals,
and the discussion and review of corporate performance with the Chief Executive Officer. The results of the
Compensation Committee’s review are summarized below.
•Goal 1: Our first 2010 performance goal was to achieve our mission of providing liquidity, stability and
affordability to the U.S. housing and mortgage markets. Our subgoals under this goal consisted of:
providing liquidity to the market while maintaining the credit quality and expected economic returns of
our new business; managing our credit book of business; administering Treasury’s Making Home
Affordable Program; and addressing our duty to serve and housing goals. Key achievements during 2010
pursuant to this goal were as follows:
• Our Single-Family business provided liquidity to the market by achieving a market share of new single-
family mortgage-related securities issuances of 44.0% for 2010, significantly exceeding its target of
33% while actively balancing this market position with prudent lending and pricing.
• Our Multifamily business provided liquidity to the market by achieving a multifamily GSE market
share of 53% for 2010, exceeding its target of 50% while actively balancing this market position with
prudent lending and pricing. Multifamily GSE market share refers to the percentage of multifamily
credit guaranty acquisitions by Fannie Mae versus Freddie Mac.
• Our Capital Markets business provided liquidity to the market through securities structuring, early
funding, whole loan conduit and related activities that generated revenues well in excess of its target of
$320 million.
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