Freddie Mac 2015 Annual Report Download - page 367

Executive Compensation Compensation Discussion and Analysis
Freddie Mac 2015 Form 10-K 365
David B. Lowman Executive Vice President Single-Family Business
Performance Highlights:
Further improved customer service and engagement levels in 2015, with a 15% increase in the company’s internal
measurement of “relationship health.”
Achieved higher market share in 2015 as compared to the prior two years.
Successfully executed substantial systems development projects designed to provide Seller/Servicers with greater purchase
certainty that the loans they sell us meet our requirements.
Continued personal industry leadership to improve standards related to foreclosure alternatives, representation and warranty
terms and loan manufacturing quality.
Established an integrated “first line of defense” risk management organization within the Single-Family Business.
Strong leadership led to improvement in all employee engagement and operating culture categories in the annual employee
survey.
At-Risk Deferred Salary (Corporate Scorecard/Individual) Funding Decision:
The Compensation Committee determined that Mr. Lowman should receive 100% of his At-Risk Deferred Salary that was subject
to reduction based on the company’s performance against the Corporate Scorecard and his individual performance.
William H. McDavid Executive Vice President General Counsel and Corporate Secretary
Performance Highlights:
Supervised the successful resolution of a variety of lawsuits, which included substantial negotiated settlements.
Continued the ongoing improvement in the productivity of the Legal Division, resulting in a significant increase in transaction
volumes and only a minimal increase in expenses.
Provided sound legal advice to the Board and senior management on a wide variety of significant issues.
At-Risk Deferred Salary (Corporate Scorecard/Individual) Funding Decision:
The Compensation Committee determined that Mr. McDavid should receive 100% of his At-Risk Deferred Salary that was subject
to reduction based on the company’s performance against the Corporate Scorecard and his individual performance.
2015 DEFERRED SALARY
The following chart reports the actual amounts of 2015 Deferred Salary for each NEO, including for
Mr. Layton for the portion of the year he was eligible to receive Deferred Salary. The actual amount
earned in each calendar quarter is scheduled to be paid on the last pay date of the corresponding
calendar quarter in 2016.
2015 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. Layton $ 818,886 $ 232,484 97% $ 239,674 100% $ 1,291,044 99%
Mr. Mackey 1,600,000 436,500 97% 450,000 100% 2,486,500 99%
Mr. Hutchins(1) 1,181,728 343,883 97% 354,518 100% 1,880,129 99%
Mr. Lowman 1,600,000 436,500 97% 450,000 100% 2,486,500 99%
Mr. McDavid 1,320,000 378,300 97% 390,000 100% 2,088,300 99%
(1) Amounts reported for Mr. Hutchins are less than the corresponding target amounts because he took additional vacation as
leave without pay during 2015. The percentages reported are based on adjusted target amounts that reflect the impact of the
leave without pay.
WRITTEN AGREEMENTS RELATING TO NEO EMPLOYMENT
We entered into letter agreements with each of our NEOs in connection with their hiring. Although the
letter agreements set forth specific initial levels of Base Salary and, where applicable, Target TDC, the
compensation of each NEO is subject to change by FHFA and to the terms of the 2015 EMCP.