Freddie Mac 2014 Annual Report Download - page 263

258 Freddie Mac
James G. Mackey, Executive Vice President – Chief Financial Officer. The Compensation Committee determined that
Mr. Mackey should receive the full amount of his At-Risk Deferred Salary that was subject to reduction based on the Corporate
Scorecard and individual performance. In recommending and determining this amount, the CEO and the Compensation
Committee considered the significant progress Mr. Mackey has made in establishing his leadership of the Finance Division
since joining the company in November 2013, as well as its subsequent transformation. Key aspects of this transformation
include reorganizing functions to increase service and reduce costs, establishing a dedicated divisional CFO function to support
the Information Technology Division, and strengthening the Finance Division’s management team with a key external hire. In
addition, Mr. Mackey’s team is playing a leadership role in a multi-year project focused on simplifying our control structure
and eliminating redundant activities.
David B. Lowman, Executive Vice President – Single-Family. The Compensation Committee determined that Mr.
Lowman should receive the full amount of his At-Risk Deferred Salary that was subject to reduction based on the Corporate
Scorecard and individual performance. In recommending and determining this amount, the CEO and the Compensation
Committee considered the impact Mr. Lowman had on the accomplishment of the goals in the 2014 Conservatorship and
Corporate Scorecards. Mr. Lowman has provided strong leadership to significantly increase the competitiveness of the Single-
Family Division, including through extensive personal client contact, helping achieve considerably higher GSE single-family
market share in 2014, and he is developing plans for future improvements. The division’s other key accomplishments included
significantly exceeding the Conservatorship Scorecard goal related to credit risk transfer transactions through seven STACR
and three ACIS transactions, achieving a major improvement in measured levels of customer service, and successfully
delivering upon a large number of other Conservatorship Scorecard goals. More broadly, during 2014, he added key members
to the Single-Family Division management team overseeing a very large number of initiatives and projects and was appointed
to CSS’s Board of Managers.
William H. McDavid, Executive Vice President – General Counsel and Corporate Secretary. The Compensation
Committee determined that Mr. McDavid should receive the full amount of his At-Risk Deferred Salary that was subject to
reduction based on the Corporate Scorecard and individual performance. In recommending and determining this amount, the
CEO and the Compensation Committee considered Mr. McDavid’s achievements and leadership of the Legal Division in 2014.
During 2014, the Legal Division provided guidance on a variety of unique and complex legal issues involving matters ranging
from private-label securities litigation to the single (common) security structure. During his tenure, he has taken steps to instill
a greater customer service focus in the Division as well as to reduce costs. He also leads by example, having personally led the
provision of legal advice on a variety of specific major issues.
Jerry Weiss, Executive Vice President – Chief Administrative Officer. The Compensation Committee determined that Mr.
Weiss should receive the full amount of his At-Risk Deferred Salary that was subject to reduction based on the Corporate
Scorecard and individual performance. In recommending and determining this amount, the CEO and the Compensation
Committee considered the positive impact that Mr. Weiss’s leadership of the Administration Division had on the
accomplishment of the goals in the 2014 Conservatorship and Corporate Scorecards, plus the expansion of his duties during the
year. Specifically, he is leading the company’s multi-year efforts on the development of the CSP and the single (common)
security, both of which achieved key milestones in 2014. He was appointed to CSS’s Board of Managers and personally led the
recruitment of the organization’s new CEO. His portfolio of activities grew during the year to include the corporate services
and procurement functions, further broadening the scope of his responsibilities. He also continued to serve as the company’s
primary senior executive liaison to FHFA, during a year that included a leadership transition following the confirmation of
Director Watt, and also to the U.S. Treasury. Additionally, he supervises the Making Home Affordable-Compliance function,
which operates under a contract from the U.S. Treasury and which continues to function effectively, well beyond its originally-
anticipated end date.
The following chart reports the actual amounts of 2014 Deferred Salary for each NEO other than Mr. Layton. The actual
amount earned is scheduled to be paid in quarterly installments on the last pay date of each calendar quarter of 2015.
Table 68 — 2014 Deferred Salary
2014 Actual Deferred Salary
At-Risk
Total Actual
Deferred
Salary % of Target
Named
Executive
Officer Fixed Conservatorship
Scorecard % of Target
Corporate
Scorecard/
Individual % of Target
Mr. Mackey $ 1,600,000 $ 450,000 100% $ 450,000 100% $ 2,500,000 100%
Mr. Lowman 1,600,000 450,000 100% 450,000 100% 2,500,000 100%
Mr. McDavid 1,320,000 390,000 100% 390,000 100% 2,100,000 100%
Mr. Weiss 900,000 300,000 100% 300,000 100% 1,500,000 100%
Written Agreements Relating to Our NEOs' Employment
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