Freddie Mac 2010 Annual Report Download - page 309

For the second installment of the 2009 TIO, management concluded that we would fully achieve the performance
objectives. The table below presents the performance measures and management’s assessment of our achievement against
those performance measures for the second installment of the 2009 TIO.
Table 75 — Achievement of Performance Measures for Second Installment of 2009 Target Incentive Opportunity
Performance Measure Weighting Key Factors Impacting Achievement Assessment
Accounting and Controls
Remediation of MRAs that are
scheduled to be remediated in 2010
and avoidance of any significant repeat
MRAs in 2010
25% • Completed the necessary steps with respect to all four MRAs
scheduled to be remediated
• No repeat MRAs were identified in 2010
Business Infrastructure
Same as for the performance-based
element of Deferred Base Salary
75% Same as for the performance-based element of Deferred Base
Salary.
After reviewing and discussing management’s final performance assessment against the specified performance measures,
the Compensation Committee concurred with management’s assessment. The Compensation Committee did not identify any
additional factors that should be taken into consideration in determining the appropriate funding level for the second
installment of the 2009 TIO. After considering our achievement against the specified performance objectives, the
Compensation Committee developed a preliminary recommended funding level for the second installment of the 2009 TIO of
approximately 95%. The Compensation Committee’s preliminary recommendation was submitted to FHFA for review.
Following this review, management informed the Compensation Committee that there were no material changes to the
assessment that was presented during the fourth quarter of 2010 and this funding level was then formally approved by the
Compensation Committee and FHFA.
For both the 2009 and 2010 TIO installments, the Compensation Committee concurred with the CEO’s recommendation
that each of the Named Executive Officers (other than Mr. Haldeman) receive a payment equal to the Compensation
Committee’s approved funding level. While individual differentiation is provided for under the terms of the Executive
Compensation Program, there is no requirement that this discretion be exercised. The decision not to vary individual
payments was made based on the following factors:
• During 2010, all of the Covered Officers who remained employed with us at year-end had either substantially
achieved or exceeded the objectives established for them at the start of the year, which are described below; and
• The recommendation reinforces to the entire Covered Officer group the need for highly coordinated, cross-functional
collaboration.
The Compensation Committee reviewed and approved the CEO’s recommendation. After consultation with the other
non-management members of the Board and consideration of Mr. Haldeman’s performance, the Compensation Committee
also approved payments to Mr. Haldeman in amounts equal to the approved funding level for the two Target Incentive
Opportunity installments.
FHFA then approved the recommended payment to each Named Executive Officer.
The following chart summarizes the TIO applicable to performance during 2010 for each of the Named Executive
Officers under the Executive Compensation Program and the amount of the 2010 TIO that was approved by the
Compensation Committee and FHFA and paid on February 18, 2011.
Table 76 — 2010 Target Incentive Opportunity
Named Executive Officer Target Actual Target Actual
2010 First Installment 2009 Second Installment
Mr. Haldeman . . . . . . . . . . . . . .......................................... $1,000,000 $947,000 $395,834 $375,250
Mr. Kari . . . . . . . . . . . . . . . . . .......................................... 583,334 552,417 130,502 123,716
Mr. Bostrom . . . . . . . . . . . . . . .......................................... 465,000 440,355 465,000 440,820
Mr. Federico . . . . . . . . . . . . . . .......................................... 435,000 411,945 419,079 397,287
Mr. Bisenius . . . . . . . . . . . . . . .......................................... 375,000 355,125 359,691 340,987
The 2009 second installment amounts for Messrs. Haldeman and Kari reflect a pro-ration of their annual TIO based on
their respective dates of hire during 2009.
2010 Target TDC Compared to 2010 Actual TDC
The following table shows 2010 Target TDC compared to the approved 2010 actual TDC for each of the Named
Executive Officers. The amounts displayed in both the “Total Target” and “Total Actual” columns include the sum of Semi-
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