Freddie Mac 2014 Annual Report Download - page 270

265 Freddie Mac
The following table shows outstanding equity awards held by the NEOs as of December 31, 2014. As of December 31,
2014, there were no outstanding RSUs.
Table 71 — Outstanding Equity Awards at Fiscal Year-End — 2014
Option Awards(1)
Grant Date
Number of Securities
Underlying Unexercised Options Option Exercise
Price(2)
Option
Expiration
DateName Exercisable Unexercisable
Mr. Layton — — — $ — —
Mr. Mackey — — — — —
Mr. Lowman — — — — —
Mr. McDavid — — — — —
Mr. Weiss 5/6/2005 5,640 — 62.69 5/5/2015
6/5/2006 5,980 — 60.45 6/4/2016
(1) Consistent with the terms of our 2004 Employee Plan, the option exercise price was set at a price equal to the fair market value of our common stock
on the grant date.
(2) Amounts reported in this table represent the unexercised portion of stock option awards. The reported stock options are fully vested.
Option Exercises and Stock Vested — 2014
During 2014, no options were exercised and no RSUs vested.
Pension Benefits — 2014
The following table shows the actuarial present value of the accumulated retirement benefits payable to each of the NEOs
under our Pension Plan and the Pension SERP Benefit (the component of the SERP that relates to the Pension Plan), computed
as of December 31, 2014. A summary of each plan follows the table. In October 2013, FHFA directed us to terminate the
Pension Plan as well as the Terminating SERP. No Pension Plan accruals or Pension SERP Benefit accruals occurred after
December 31, 2013. The accruals associated with the Terminating SERP were fully distributed by October 31, 2014.
Table 72 — Pension Benefits — 2014
Name Plan Name Number of Years Credited Service(1) Present value of Accumulated Benefit(2) Payments During Last Fiscal Year(3)
Mr. Layton Pension Plan — $ — $ —
Pension SERP Benefit — — —
Mr. Mackey Pension Plan — — —
Pension SERP Benefit — — —
Mr. Lowman Pension Plan — — —
Pension SERP Benefit — — —
Mr. McDavid Pension Plan — — —
Pension SERP Benefit — — —
Mr. Weiss Pension Plan 10.2 312,325 —
Pension SERP Benefit 10.2 — 572,983
(1) Amounts reported represent the credited years of service for each NEO as of December 31, 2013, under the Pension Plan and the Pension SERP
Benefit, respectively.
(2) Amounts reported reflect the present value, expressed as a lump sum as of December 31, 2014, of each NEO’s benefits under the Pension Plan. Pension
Plan Benefits reflected are fully vested. Messrs. Layton, Mackey, Lowman and McDavid were not eligible to participate in the Pension Plan or Pension
SERP Benefit since they were hired after December 31, 2011, when the plans closed to new hires.
(3) Amounts reported reflect the Pension SERP Benefit, which were fully distributed by October 31, 2014 pursuant to the termination of the Pension SERP.
See “Other Executive Compensation Considerations - Supplemental Executive Retirement Plan and Supplemental Executive Retirement Plan II,”
above.
Pension Plan
The Pension Plan is a tax-qualified, defined benefit pension plan, covering substantially all employees hired before 2012
who have attained age 21 and completed one year of service with us. The Pension Plan was closed to new entrants effective
January 1, 2012. In October, 2013, we received a directive from FHFA to cease accruals under the Pension Plan effective
December 31, 2013 and to commence terminating the Pension Plan. As a result of the Pension Plan termination, unvested
active participants as of December 31, 2013 became fully vested.
In August 2014, a favorable determination letter of the Pension Plan’s tax-qualified status was issued by the IRS with
respect to the termination of the Pension Plan, which is expected to be completed in 2015.
Table of Contents