Freddie Mac 2010 Annual Report Download - page 305

surveys published by Aon Hewitt and Towers Watson. For the positions of Executive Vice President — Investments &
Capital Markets and Treasurer and Executive Vice President — Single Family Credit Guarantee, the Compensation
Committee reviewed competitive market data from a survey published by McLagan, because no reasonable match was
available in the Comparator Group.
With respect to 2010 Target TDC for the Named Executive Officers, the Compensation Committee, working with Steven
Hall & Partners, either developed recommendations or reviewed recommendations presented by senior management and its
compensation consultant (Aon Hewitt).
In December 2009, the Compensation Committee applied the criteria described above to set 2010 Target TDC for the
Named Executive Officers, which were reviewed and approved by FHFA, in consultation with Treasury.
The table below sets forth the approved 2010 Semi-Monthly Base Salary, Deferred Base Salary, TIO, and Target TDC
for our Named Executive Officers. These amounts represent compensation targets, not the actual amount of compensation
paid for performance during 2010. Information about the amounts actually paid during or with respect to performance during
2010 to these executives is set forth below in the Summary Compensation Table.
Table 71 — 2010 Semi-Monthly Base Salary, Deferred Base Salary, Target Incentive Opportunity, and Target TDC
Named Executive Officer Title
Semi-
Monthly
Base Salary
Deferred
Base Salary
Target
Incentive
Opportunity
Target
TDC
2010 Target TDC
Charles E. Haldeman, Jr. . . . . . CEO $900,000 $3,100,000 $2,000,000 $6,000,000
Ross J. Kari .............. EVP—CFO 675,000 1,658,333 1,166,667 3,500,000
Robert E. Bostrom ......... EVP—General Counsel & Corporate Secretary 500,000 1,360,000 930,000 2,790,000
Peter J. Federico . .......... EVP—Investments & Capital Markets and Treasurer 400,000 1,340,000 870,000 2,610,000
Donald J. Bisenius ......... EVP—Single Family Credit Guarantee 400,000 1,100,000 750,000 2,250,000
In establishing the Named Executive Officer’s 2011 Target TDC, the Compensation Committee reviewed 2010 data
from the Comparator Group and one alternative survey source. Specifically, for the positions of CEO, CFO and Executive
Vice President — General Counsel & Corporate Secretary, the Compensation Committee, at the recommendation of Meridian
Compensation Partners, LLC, reviewed competitive market compensation data from the Comparator Group. For the positions
of Executive Vice President — Investments & Capital Markets and Treasurer and Executive Vice President — Single Family
Credit Guarantee, the Compensation Committee at the recommendation of Meridian Compensation Partners, LLC, reviewed
competitive market data from a survey published by McLagan, because no reasonable match was available in the Comparator
Group.
With respect to 2011 Target TDC for the Named Executive Officers, the Compensation Committee, working with
Meridian Compensation Partners, LLC, reviewed recommendations presented by senior management.
The Compensation Committee’s authority was limited to setting 2011 Target TDC at a level that was either the same as
or lower than each Named Executive Officer’s 2010 Target TDC, based on the December 16, 2010 directive from FHFA that
the company maintain individual salaries and wage rates at 2010 levels for 2011, absent a promotion or a significant change
in responsibilities. In February 2011, the Compensation Committee applied the compensation criteria described above to set
2011 Target TDC for the Named Executive Officers, which were reviewed and approved by FHFA, in consultation with
Treasury.
The 2011 Target TDC and each of the other elements of compensation remains unchanged for all Named Executive
Officers other than Mr. Bostrom. Mr. Bostrom’s Target TDC was reduced by $40,000 to $2,750,000 to bring it more in line
with the 50th percentile of the 2010 competitive market data. His semi-monthly base salary remains at $500,000, but his
Deferred Base Salary and TIO have been reduced to $1,333,333 and $916,667, respectively. See “Other Information — 2011
Target Compensation for Named Executive Officers” for additional information.
Determination of the Performance-Based Portion of 2010 Deferred Base Salary
Over the course of 2010, the Compensation Committee received updates from management on our achievement against
the performance objectives used to determine the funding level for the performance-based portion of Deferred Base Salary.
In the fourth quarter of 2010, management presented the Compensation Committee with a final achievement assessment
against the performance objectives and concluded that we would achieve most, but not all, of the performance objectives.
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