Fannie Mae 2012 Annual Report Download - page 195

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Objectives Weighting Targets Final Score Summary of Performance Against Targets
• Expand financing for small investors
in REO properties by June 30, 2012. • Met this target: Implemented enhancements to our HomePath®
financing program in July 2012 to
provide expanded financing options for
small investors in REO properties.
• Initiate disposition pilot, either
through financing or bulk sales, by
September 30, 2012.
• Met this target: Completed the first
transactions under FHFA’s REO pilot
initiative in September 2012.
• Expand pilot programs and establish
ongoing sales program, as agreed to
with FHFA, during 2012.
• Met this target: Plan for ongoing sales
program provided to FHFA in
December 2012.
4. Manage Efficiently in
Support of
Conservatorship Goals
20% 18.3%
• Conservatorship / Board
Priorities 20% • Work closely with FHFA toward concluding litigation associated with
private-label securities and whole
loan repurchase claims, as
appropriate.
• Prioritize and manage Enterprise
operations in support of
conservatorship goals and board
directions.
• Adapt to evolving conservatorship
requirements.
• Collaborate fully with FHFA and,
when requested, the other Enterprise.
• Actively seek and consider public
input on conservatorship-related
projects, as requested.
• Effectively identify, communicate,
and remediate situations that create
risk for the conservatorships or
avoidable taxpayer losses.
• Ensure corporate governance
procedures are maintained, including
timely reporting to the board and
adhering to board mandates and
expectations.
• Take steps to mitigate key person
dependencies and maintain
appropriate internal controls and risk
management governance.
• Achieve milestones agreed to within
the year with regard to accounting
alignment.
18.3% • Met 7 of 9 targets: Management
worked closely with FHFA and the
Board throughout the year to focus on
and achieve these conservatorship and
Board priorities for 2012. The
company fully achieved all but the two
following targets:
• Effectively identify, communicate,
and remediate situations that create
risk for the conservatorships or
avoidable taxpayer losses. This
target was not fully achieved. As of
year end, certain aspects of the
company’s internal control
environment continued to need
strengthening.
• Take steps to mitigate key person
dependencies and maintain
appropriate internal controls and
risk management governance. This
target was not fully achieved. While
the company took steps to mitigate
key person dependencies and
maintain appropriate internal
controls and risk management
governance, as of year end, certain
aspects of the company’s internal
control environment continued to
need strengthening.
Assessment of Corporate Performance of 2011 Long-Term Incentive Award Goals (Second Installment)
In March 2011, the Board established 2012 corporate performance goals for the second installment of the 2011 long-term
incentive award. FHFA approved these goals in April 2011. The Board did not assign any relative weight to the goals and the
Compensation Committee was permitted to consider other factors in addition to the goals in assessing corporate performance.
In late 2012 and early 2013, the Compensation Committee reviewed the company’s performance against the 2012
performance goals and related metrics relating to the second installment of the 2011 long-term incentive award. As part of its
review, the Compensation Committee reviewed management’s assessment of the company’s performance against the goals,
discussed the company’s performance with the Chief Executive Officer and received input from FHFA on the company’s
performance against the goals. Based on this evaluation, the Compensation Committee determined that the pool for the