Freddie Mac 2015 Annual Report Download - page 358

Executive Compensation Compensation Discussion and Analysis
Freddie Mac 2015 Form 10-K 356
EXECUTIVE COMPENSATION
COMPENSATION DISCUSSION AND ANALYSIS
This section contains information regarding our compensation programs and policies (all of which have
been approved by FHFA) and the compensation of the following individuals who we determined to be our
Named Executive Officers, or NEOs, for the year ended December 31, 2015.
Named Executive Officers
Donald H. Layton Chief Executive Officer
James G. Mackey Executive Vice President - Chief Financial Officer
Michael T. Hutchins Executive Vice President - Investments and Capital Markets
David B. Lowman Executive Vice President - Single-Family Business
William H. McDavid Executive Vice President - General Counsel & Corporate Secretary
For information on our primary business objectives and the progress we made during 2015 toward
accomplishing those objectives, see “Introduction — Executive Summary.”
OVERVIEW OF EXECUTIVE MANAGEMENT COMPENSATION
PROGRAM
The 2015 Executive Management Compensation Program, or 2015 EMCP, balances our need to retain
and attract executive talent with promoting the conservatorship objectives included in FHFA’s
Conservatorship Scorecard, as well as goals separately established by management related to the
commercial aspects of our business, which are included in our Corporate Scorecard. All compensation
under the 2015 EMCP is delivered in cash because the Purchase Agreement does not permit us to
provide equity-based compensation to our employees unless approved by Treasury. Compensation in
2015 for each NEO, other than as noted for Mr. Layton, was governed by the 2015 EMCP.
The only change between the 2015 EMCP and the 2014 EMCP that potentially affects the compensation
of our NEOs is the definition of retirement eligibility. For purposes of the 2015 EMCP, retirement is defined
as voluntarily terminating employment after attaining or exceeding 62 years of age, regardless of length of
service, or after attaining or exceeding 55 years of age with 10 or more years of service. Previously,
retirement eligibility was achieved only upon attaining age 65, without regard to length of service.
Additional information about the 2015 EMCP is provided below and in our Quarterly Report on Form 10-Q
for the fiscal quarter ended June 30, 2015 filed on August 4, 2015.