Fannie Mae 2004 Annual Report Download - page 244

telecommunications services and a car and driver on a part-time basis, less reimbursements from Mr. Johnson,
was approximately $233,000 in 2001, $218,000 in 2002, $193,000 in 2003, $304,000 in 2004, $140,000 in
2005 and $0 in 2006.
David Maxwell. Pursuant to his employment agreement, our former CEO, David Maxwell, is eligible to
participate in our employee welfare benefit plans, including our health and medical plans, and is entitled to
have us pay all medical, dental and hospitalization expenses for Mr. Maxwell and his spouse that are not
covered by our plans. Pursuant to his agreement, we provide Mr. Maxwell with an office and secretary, as well
as excess personal liability insurance, financial planning assistance and an annual physical exam. We anticipate
paying these benefits to Mr. Maxwell until such time as he no longer requests them. The following table sets
forth our estimated costs of providing certain of these benefits.
Office and Secretarial Benefit Financial Planning Assistance
2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $165,000 $105,000
2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $183,000 $120,000
2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $195,000 $113,000
2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $201,000 $115,000
2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $203,000 $ 74,000
2006 (through October 6) . . . . . . . . . . . . . . . . . . $168,000 $112,000
Franklin Raines. We provide our former CEO Franklin Raines with certain employee benefits as described
above under “Employment Agreement with Franklin Raines, Former Chairman and Chief Executive Officer.”
Charitable Contributions
We have a corporate charitable donations program and are the sole provider of support for the Fannie Mae
Foundation for similar activity. We encourage our employees to volunteer their time to charitable organiza-
tions, including the Foundation, and actively support these volunteer activities. Our charitable activities, and
those of the Foundation, generally focus on creating affordable homeownership and housing opportunities
nationally and improving the quality of life for people of our hometown, Washington, D.C., through
partnerships and initiatives and by funding and promoting research and education on housing-related issues. In
2004, we donated approximately $1.4 million of securities to the Foundation. In 2006, we made a contribution
to the Foundation of $14 million. Our President and CEO, Daniel Mudd, is the Chairman of the Board of the
Foundation. In addition, the Board of Directors of the Foundation includes four additional members who are
current officers of Fannie Mae and two members who are former officers of Fannie Mae. Effective as of
January 1, 2004, directors of the Foundation who are current Fannie Mae employees do not receive any
additional compensation for serving on the Foundation’s Board of Directors.
Under its Matching Gifts Program, the Fannie Mae Foundation will match gifts made by employees to
501(c)(3) public charities, up to an aggregate total of $10,000 per employee in any calendar year, including up
to $500 which may be matched on a 2-for-1 basis. Directors and executive officers are eligible to participate
in this matching program on the same terms as our other employees.
We made charitable contributions to Howard University totaling approximately $76,300 during the period from
2004 through 2006. These contributions were in support of our commitment to community development and
affordable housing, and in particular in furtherance of our commitment to revitalize the LeDroit Park
neighborhood. One of our directors, Mr. Swygert, is the president of Howard University.
The Fannie Mae Foundation made charitable contributions to the University of Pennsylvania of $91,667 in
each of 2004 and 2005 to support training for mid-career professionals in real estate financing and to support
research on housing policy. One of our directors, Mr. Gerrity, is a professor at the University of Pennsylvania.
Mr. Gerrity had no involvement in the Foundation’s grant-making decision.
Item 14. Principal Accounting Fees and Services
The Audit Committee of our Board of Directors is directly responsible for the appointment, oversight and
evaluation of our independent registered public accounting firm. In accordance with the Audit Committee’s
charter, it must approve, in advance of the service, all audit and permissible non-audit services to be provided
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