Fannie Mae 2006 Annual Report Download - page 198

Summary Compensation Table for 2006
The following table shows summary compensation information for the named executives for 2006.
Name and Principal
Position Year
Salary
($)
(1)
Bonus
($)
(2)
Stock
Awards
($)
(3)
Option
Awards
($)
(4)
Non-Equity
Incentive Plan
Compensation
($)
(2)
Change in
Pension Value
and
Nonqualified
Deferred
Compensation
Earnings ($)
(5)
All Other
Compensation
($)
(6)
Total
($)
Daniel Mudd . . . . . . . . . . . 2006 $950,000 — $4,799,057 $962,112 $3,500,000 $932,958 $ 136,072 $11,280,199
President and Chief
Executive Officer
Robert Blakely . . . . . . . . . . 2006 587,500 $ 926,250 3,898,589 — 364,325 209,087 140,480 6,126,231
Executive Vice President
and Chief Financial Officer
Robert Levin . . . . . . . . . . . 2006 750,000 — 2,477,097 883,442 2,087,250 307,078 70,710 6,575,577
Executive Vice President,
Chief Business Officer and
former Chief Financial
Officer
Peter Niculescu . . . . . . . . . . 2006 538,188 — 1,388,328 533,816 1,029,060 232,562 39,906 3,761,860
Executive Vice
President—Capital Markets
Beth Wilkinson . . . . . . . . . . 2006 490,961 1,748,750 396,712 — 199,238 198,413 35,578 3,069,652
Executive Vice President,
General Counsel and
Corporate Secretary
Michael Williams . . . . . . . . 2006 650,000 — 1,808,182 701,446 1,630,200 371,753 69,482 5,231,063
Executive Vice President
and Chief Operating Officer
Julie St. John
(7)
. . . . . . . . . . 2006 536,618 — 1,514,019 744,008 — 936,773 1,841,777 5,573,195
Former Executive Vice
President and Chief
Information Officer
(1)
Mr. Mudd is entitled to a minimum base salary of $950,000 under his employment agreement. “Salary” for Mr. Blakely
includes $275,000 he elected to defer to later years.
(2)
Except as otherwise noted, amounts reported in the “Bonus” column do not include amounts earned under our annual
incentive plan, which are shown in the “Non-Equity Incentive Plan Compensation” column. In 2007, Mr. Blakely was
awarded a total bonus of $1,290,575 under our annual incentive plan, which he deferred to later years. Of this amount,
we guaranteed him in connection with his joining Fannie Mae a minimum bonus of $926,250 for 2006, which we have
reported in the “Bonus” column. Ms. Wilkinson was awarded a total bonus of $1,147,988 under our annual incentive
plan for 2007. Of this amount, Ms. Wilkinson was guaranteed to receive $948,750 in connection with her joining
Fannie Mae. We have reported the guaranteed amount, along with an $800,000 sign-on bonus Ms. Wilkinson received,
in the “Bonus” column.
(3)
These amounts represent the dollar amounts we recognized for financial statement reporting purposes with respect to
2006 for the fair value of restricted stock, restricted stock units and performance shares granted during 2006 and in
prior years in accordance with SFAS 123R. As required by SEC rules, the amounts shown exclude the impact of
estimated forfeitures related to service-based vesting conditions and do not reflect the impact of Ms. St. John’s actual
forfeiture of 27,931 shares of restricted stock and performance shares upon her departure from Fannie Mae in
December 2006. As a result of the Board’s decision to pay out awards at 40% for the 2003-2005 performance cycle
and at 47.5% for the 2004-2006 performance cycle, we reversed expenses we previously recorded based on our
estimate that awards would be paid out at 50%. To the extent these expenses were recorded prior to 2006, the amounts
above do not reflect the reversal of these expenses.
The SFAS 123R grant date fair value of restricted stock and restricted stock units is calculated as the average of the
high and low trading price of our common stock on the date of grant. Because performance shares do not participate
in dividends during the three-year performance cycle and include a cap on the market value to be paid equal to three
times the grant date market value, the SFAS 123R grant date fair value of performance shares is calculated as the
market value on date of grant, less the present value of expected dividends over the three-year performance period
discounted at the risk-free rate, less the value of the three-times cap based on a Black-Scholes option pricing model.
(4)
These amounts represent the dollar amounts we recognized for financial statement reporting purposes with respect to
2006 for the fair value of stock option awards granted during 2004 and in prior years in accordance with SFAS 123R.
No named executive has received a stock option award since January 2004. As required by SEC rules, the amounts
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