Freddie Mac 2015 Annual Report Download - page 362

Executive Compensation Compensation Discussion and Analysis
Freddie Mac 2015 Form 10-K 360
Compensation,” FHFA approved Mr. Layton’s participation in the 2015 EMCP from July 1, 2015 to
November 24, 2015.
The Compensation Committee’s 2016 Target TDC recommendation for our executive officers, including
each of our NEOs, was approved by FHFA on February 17, 2016. For each of the NEOs identified in this
Form 10-K as well as each of the NEOs identified in our Form 10-K for the fiscal year ended December
31, 2014 filed on February 19, 2015, 2016 Target TDC will be unchanged from 2015 Target TDC.
DETERMINATION OF 2015 AT-RISK DEFERRED SALARY
The Compensation Committee and FHFA considered our achievements in pursuing our primary business
objectives, as well as other factors, in determining the funding level for At-Risk Deferred Salary in 2015.
FHFA determined the funding level for the portion of At-Risk Deferred Salary based on Conservatorship
Scorecard performance, and the Compensation Committee determined, with FHFA’s review and approval,
the amounts payable to each NEO for the portion of At-Risk Deferred Salary based on Corporate
Scorecard goals and individual performance.
AT-RISK DEFERRED SALARY BASED ON CONSERVATORSHIP SCORECARD
PERFORMANCE
Half of each eligible NEO’s 2015 At-Risk Deferred Salary, or 15% of Target TDC, was subject to reduction
based on FHFA’s assessment of the company’s performance against the objectives in the 2015
Conservatorship Scorecard. FHFA independently assessed the company’s performance and determined
that a 97% funding level was justified for the portion of At-Risk Deferred Salary based on the 2015
Conservatorship Scorecard. FHFA noted the following considerations in assessing our performance
against the Conservatorship Scorecard:
• Our thought leadership in the areas of non-performing loan sales, multifamily risk transfers and the
Common Securitization Platform (CSP);
• Our continuing efforts to reduce taxpayer risk through credit risk transfers of more than $196 billion in
unpaid principal balance and by reducing the retained portfolio through sales of less liquid assets;
• The execution of four different types of single-family credit risk transfer transactions and the
implementation of two pilot multifamily risk transfer structures, including $3.4 billion of multifamily
military housing bonds; and
• Our support of the development and testing of the CSP, our support of certain corporate functions
related to Common Securitization Solutions (CSS) and our active and engaged role on the CSS
Board of Managers.
In making its assessment, FHFA also took into consideration the following:
• The extent to which the initiatives were undertaken in a safe and sound manner;
• The extent to which the outcomes of our activities supported a competitive and resilient secondary
mortgage market to the benefit of homeowners and renters;
• The extent to which initiatives were conducted with appropriate consideration for diversity and
inclusion;
• Cooperation and collaboration with FHFA, Fannie Mae, CSS, and the industry; and
• The quality, thoroughness, creativity, effectiveness, and timeliness of our work products.