Freddie Mac 2010 Annual Report Download - page 317

(7) Amounts reflect (i) basic and matching contributions we made to our tax-qualified Thrift/401(k) Savings Plan; (ii) accruals we made pursuant to the
Thrift/401(k) SERP Benefit; (iii) FlexDollars (described below); and (iv) perquisites and other personal benefits received. These amounts for 2010 are as
follows:
Thrift/401(k)
Savings Plan
Contributions
Thrift/401(k)
SERP Benefit Accruals
Total Flex
Dollars Perquisites
Mr. Haldeman . . ............................................. $ — $22,500 $19,035 $ 62,839
Mr.Kari .................................................. — — 14,792 376,484
Mr. Bostrom . . . ............................................. 18,689 64,375 14,168 —
Mr. Federico . . . ............................................. 22,364 53,700 21,782 —
Mr. Bisenius . . . ............................................. 22,364 53,700 15,988 —
Employer contributions to the Thrift/401(k) Savings Plan are available on the same terms to all of our employees. We match up to the first 6% of
eligible compensation at 100% of the employee’s contributions, with the percentage matched dependent upon the employee’s length of service.
Employee contributions and our matching contributions are invested in accordance with the employee’s investment elections and are immediately vested.
In addition, on a discretionary basis, we may make an additional contribution to our Thrift/401(k) Savings Plan, referred to as the “basic contribution,”
that is allocated on behalf of each eligible employee, based on a stated percentage of each employee’s eligible compensation. When we make a basic
contribution, it occurs after the end of the calendar year to which it relates. The formula for the contribution is 2% of pay up to the Social Security
wage base, which was $106,800 for 2010, and 4% of pay above the Social Security wage base. Basic contributions were approved and posted to
employees’ accounts in 2008, 2009, and 2010. Basic contributions received on or after January 1, 2008 are subject to a graded vesting schedule such
that employees with less than five years of service are not fully vested in a basic contribution on the contribution date, but they become vested at the
rate of 20% per year over the first five years of service.
For additional information regarding the Thrift/401(k) SERP Benefit, see “Non-qualified Deferred Compensation” below. Amounts for the Thrift/401(k)
Savings Plan contributions and Thrift/401(k) SERP Benefit accruals are presented without regard to vesting status. To be eligible for the portion of the
Thrift/401(k) SERP Benefit attributable to matching contributions, the Named Executive Officer must contribute the maximum amount permitted under
the terms of the Thrift/401(k) Savings Plan on a pre-tax basis throughout the entire period of the year in which the Named Executive Officer is eligible
to make such contributions. Mr. Haldeman contributed the maximum amount to the Thrift/401(k) Savings Plan prior to completing the one year service
requirement needed to be eligible for Thrift/401(k) SERP Benefit accruals in 2010. Mr. Kari did not contribute the required amount and thus was not
eligible for Thrift/401(k) SERP Benefit accruals in 2010.
FlexDollars are provided under our Flexible Benefits Plan and are generally available to all employees to offset costs related to medical, dental and
vision coverage, group term life insurance, accidental death and personal loss insurance, and vacation purchase. FlexDollars can be used to offset the
cost of other benefits and any unused FlexDollars are payable as taxable income.
Perquisites are valued at their aggregate incremental cost to us. During the years reported, the aggregate value of perquisites received by all Named
Executive Officers other than Messrs. Haldeman and Kari was less than $10,000. In accordance with SEC rules, amounts shown under “All Other
Compensation” do not include perquisites or personal benefits for a Named Executive Officer that, in the aggregate, amount to less than $10,000.
The amount shown in the “Perquisites” column for Mr. Haldeman consists entirely of relocation expenses paid as part of the relocation benefit we
agreed to provide when we hired him. The amount shown in the “Perquisites” column for Mr. Kari consists of (a) relocation expenses of $369,484 paid
as part of the relocation benefit we agreed to provide when we hired him; and (b) financial planning services. As part of our standard executive
relocation program, we purchased Mr. Kari’s former home at a price equal to the average of two independent appraisals, while the price at which the
home ultimately sold was significantly lower because of a decline in the home’s value between our purchase and the sale. SEC rules require that we
include this difference as fiscal year 2010 compensation.
We calculated the incremental cost to us of providing each of Mr. Haldeman’s and Mr. Kari’s relocation expenses based on actual cost; that is, the total
amount of expenses incurred by us in providing the benefit.
The amounts shown in “All Other Compensation” for 2009 for Messrs. Haldeman and Kari have been restated to include payments for relocation
services ($9,644 and $10,152, respectively) incurred late in 2009 and inadvertently excluded from amounts previously reported.
Grants of Plan-Based Awards — 2010
The following table contains information concerning grants of plan-based awards to each of the Named Executive
Officers during 2010. We are prohibited from issuing equity securities, without Treasury’s consent, under the terms of the
Purchase Agreement. Accordingly, no stock awards were granted during 2010. For a description of the performance and
other measures used to determine payouts, see “CD&A — Executive Management Compensation Program — Elements of
Compensation and Total Direct Compensation — Deferred Base Salary,” “Target Incentive Opportunity,” “Performance
Measures for the Performance-Based Elements of Compensation,” “Determination of the Performance-Based Portion of 2010
Deferred Base Salary,” and “Determination of Actual Target Incentive Opportunity.”
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