Fannie Mae 2010 Annual Report Download - page 221

effort involved the work of hundreds of people, and had a substantial impact on our overall internal control
environment. Mr. Hisey’s leadership of this project was critical in ensuring that it was completed successfully
and on time. The Chief Executive Officer also considered Mr. Hisey’s key partnership role in supporting the
Credit Portfolio Management team, particularly with respect to special servicing efforts. In addition, the Chief
Executive Officer considered Mr. Hisey’s leadership of the company’s participation in FHFA’s ongoing
initiative to review and evaluate servicing compensation for single-family loans, which includes not only
managing a large internal team but also coordinating with FHFA.
David Benson, Executive Vice President—Capital Markets. The Chief Executive Officer recommended to the
Board that the first installment of Mr. Benson’s 2010 long-term incentive award be $440,000, which was
approximately 95% of his target. The Board approved this recommendation. In recommending the amount of
Mr. Benson’s long-term incentive award, the Chief Executive Officer considered that, under Mr. Benson’s
leadership, the Capital Markets group provided significant liquidity support to the market through securities
structuring, early funding, whole loan conduit and related activities. The Chief Executive Officer also
considered the additional responsibilities Mr. Benson took on as the company’s Treasurer in 2010, and his key
role in refinancing and restructuring a significant portion of our outstanding debt. Mr. Benson also had a
significant role in obtaining funding for the company’s purchase of over $200 billion in delinquent loans from
our single-family MBS trusts in 2010, which had a beneficial impact on our financial results. The Chief
Executive Officer also considered Mr. Benson’s integral role in communicating with the company’s regulators
and his significant work in the company’s efforts to improve its culture.
Terence Edwards, Executive Vice President—Credit Portfolio Management. The Chief Executive Officer
recommended to the Board that the first installment of Mr. Edwards’ 2010 long-term incentive award be
$420,000, which was approximately 90% of his target. The Board approved this recommendation. In
recommending the amount of Mr. Edwards’ long-term incentive award, the Chief Executive Officer considered
Mr. Edwards’ outstanding leadership in transforming the credit portfolio management team, which was one of
the company’s most critical leadership challenges in 2010. Mr. Edwards built a strong credit portfolio
management team, adding over 600 people to his division through both internal and external resources. Under
Mr. Edwards’ effective leadership, his division handled an extraordinarily large volume of default prevention
and loss mitigation activities in 2010, which had a positive impact on both homeowners and Fannie Mae’s
credit losses. In addition, the Chief Executive Officer determined that Mr. Edwards’ leadership made it
possible for the credit portfolio management team to make significant progress in addressing and remediating
control issues.
Timothy Mayopoulos, Executive Vice President, Chief Administrative Officer, General Counsel and Corporate
Secretary. The Chief Executive Officer recommended to the Board that the first installment of
Mr. Mayopoulos’ 2010 long-term incentive award be $485,000, which was approximately 99% of his target.
The Board approved this recommendation. In recommending the amount of Mr. Mayopoulos’ long-term
incentive award, the Chief Executive Officer considered the additional responsibilities Mr. Mayopoulos took
on in 2010 as the company’s new Chief Administrative Officer, with responsibility for the Human Resources,
Communications and Marketing Services, and Government and Industry Relations divisions. The Chief
Executive Officer also considered Mr. Mayopoulos’ many significant accomplishments in 2010, which
included his effective leadership relating to the settlement and ongoing handling of the company’s litigation
matters and his critical leadership role relating to the company’s participation in Congressional hearings and in
the Financial Crisis Inquiry Commission hearings. In addition, the Chief Executive Officer considered
Mr. Mayopoulos’ significant role in developing the company’s operating plan as part of the company’s goal of
building a stronger service and delivery model, particularly in the early stages of this effort. He also
considered that Mr. Mayopoulos continues to play a key advisory role in connection with the company’s
operating plan.
Compensation Arrangements with our Former Chief Financial Officer
Mr. Johnson, the company’s former Chief Financial Officer, received base salary in 2010 through his departure
date of December 29, 2010. Mr. Johnson was not eligible to receive the fourth quarterly installment of his
2009 deferred pay because he was not employed by us on the payment date for that installment. In addition,
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