Freddie Mac 2010 Annual Report Download - page 311

Individual Performance Measures Assessment of Performance
Mr. Haldeman
• Lead the execution of objectives included in the corporate scorecard;
• Enhance human capital initiatives related to diversity and inclusion and
management continuity; and
• Foster a risk management culture throughout the company, including incorporating
risk-adjusted measures in management decision making and the assessment of
business performance.
In 2010, Mr. Haldeman created a strong leadership team and
was able to maintain management continuity through a time
of change and departures of top executives in the Human
Resources, Technology and Risk functions. He led human
capital initiatives to create an atmosphere of openness and
accessibility with employees, including the creation of a new
division — the Office of Diversity and Inclusion. He
strengthened the risk-management discipline across the
company, providing a better framework for risk management
and improving our risk management process.
Mr. Kari
• Complete all finance-related business infrastructure initiative deliverables;
• Identify opportunities to meet or exceed the Financial Execution and Mission goals
in the corporate scorecard;
• Complete all activities necessary to certify compliance with Sarbanes-Oxley
Section 404;
• Timely implement accounting standards relating to transfers of financial assets and
consolidation of variable interest entities; and
• Identify and execute on opportunities to reduce corporate expenses.
Mr. Kari successfully executed several key projects while
also bringing about multiple structural improvements in the
Finance division. He achieved the finance-related business
infrastructure plan deliverables, led the timely
implementation of accounting standards relating to transfers
of financial assets and consolidation of variable interest
entities, and managed the activities necessary to certify
compliance with Sarbanes-Oxley Section 404. Mr. Kari was
also instrumental in coordinating activities between various
divisions in order to resolve business issues and identify
opportunities to meet or exceed corporate scorecard
objectives. He demonstrated effective leadership as he
designed, communicated, and implemented a significant
reorganization.
Mr. Bostrom
• Manage high profile, complex litigation and corporate investigations;
• Coordinate our compliance with new SEC disclosure requirements related to Board
governance and compensation matters;
• Provide effective legal advice and support to business units in the execution of their
2010 transaction goals and business plans, including the Making Home Affordable
Program;
• Manage the company’s response to a high volume of significant newly enacted
regulations, regulatory orders and guidance, including the financial services reform
legislation; and
• Establish a corporate e-discovery program to mitigate litigation-related risks.
Mr. Bostrom’s technical proficiency and experience allowed
us to manage demanding and complex legal issues. In
particular, he managed complex litigation and government
and corporate investigations and performed additional
activities created by the current environment, including
significant business transactions. He advised on numerous
significant federal and state legislative matters, provided
advice on conservatorship operations and business
transactions, and provided advice on new initiatives and
regulatory matters. The Legal division also acquired an e-
discovery solution that will create efficiencies in litigation
activities.
Mr. Federico
• Support and provide liquidity and stability in the mortgage market by:
— Satisfying the portfolio size limit prescribed in the Senior Preferred Stock
Purchase Agreement; and,
— Achieving the Option Adjusted Spread target on new purchases;
• Maximize the effectiveness of funding and liquidity management activities;
• Enhance the internal controls of the Investments and Capital Markets division; and
• Improve the flexibility, transparency and effectiveness of investment-related models.
Mr. Federico was successful in building strong and
collaborative relationships within the company and with our
conservator that helped in the initiation and implementation
of strategies to meet the applicable objectives in the
corporate scorecard and provide liquidity and stability in the
mortgage market. He also worked with our regulator to
develop and implement a more comprehensive and stringent
set of liquidity measures and limits. During 2010, all interest
rate risks were maintained within predetermined limits, all
open Matters Requiring Attention were remediated according
to the approved schedules, and all model enhancements were
implemented as planned.
Mr. Bisenius
• Lead achievement of the applicable objectives in the corporate scorecard related to
sourcing profitable new business;
• Manage credit losses on the existing mortgage portfolio;
• Complete the applicable elements of 2010 the business infrastructure plan; and
• Meet the 2010 affordable housing goals and subgoals applicable to new single-
family purchases.
Under Mr. Bisenius’ leadership, during 2010 the single-
family guarantee business achieved or exceeded all of the
corporate scorecard objectives applicable to new purchases
of single-family mortgages while maintaining strong credit
quality. He also effectively managed credit losses on existing
mortgages and achieved all of his division’s business
infrastructure plan deliverables. With respect to the
affordable housing goals, based on preliminary information,
it is expected that all of the single-family goals will be
achieved with the exception of one goal and its related
subgoal.
Written Agreements Relating to Employment of CEO and CFO
We have entered into: (a) a Memorandum Agreement; and (b) a recapture agreement with each of Messrs. Haldeman
and Kari in connection with their employment as our executive officers. Copies of the Memorandum Agreement and the
recapture agreement regarding Messrs. Haldeman and Kari were filed as Exhibits 10.1 and 10.2, respectively, to our Current
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