Fannie Mae 2012 Annual Report Download - page 207

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(6) The reported amounts represent change in pension value. We calculated these amounts using the same assumptions we use for
financial reporting under GAAP, using a discount rate of 4.15% as of December 31, 2012. None of our named executives received
above-market or preferential earnings on nonqualified deferred compensation.
Mr. Williams left the company in July 2012 and began receiving retirement benefit payments in February 2013, based on a benefit
commencement date of November 1, 2012, at age 55. Accordingly, for purposes of determining Mr. Williams’ change in pension
value, we calculated Mr. Williams’ pension value as of December 31, 2012 based on his actual benefit commencing at age 55. If we
had calculated Mr. Williams’ change in pension value assuming that he would remain in service until the normal retirement ages under
the applicable pension plans, the increase in pension value reported in this column would have been $1,112,108. See “Pension
Benefits” below for more information.
The discount rate used to determine pension value as of December 31, 2012 decreased by 80 basis points from the rate used as of
December 31, 2011. Of the $2,491,883 increase in pension value reported for Mr. Williams, $1,379,775 was attributable to his election
to begin receiving benefits at age 55 rather than at the normal retirement ages under the plans, $822,800 was attributable to changes in
actuarial assumptions (primarily the reduction in the discount rate noted above), $267,400 was attributable to financing cost, and
$21,908 was attributable to amounts earned through his 2012 service. Of the $321,555 increase in pension value reported for
Mr. Benson, $181,900 was attributable to changes in actuarial assumptions (primarily the reduction in the discount rate noted above),
$48,500 was attributable to financing cost, and $91,155 was attributable to amounts earned through his 2012 service.
(7) The table below shows more information about the amounts reported for 2012 in the “All Other Compensation” column, which consist
of (1) company contributions under our Retirement Savings Plan (401(k) Plan); (2) company credits to our Supplemental Retirement
Savings Plan; (3) matching charitable contributions under our matching charitable gifts program; and (4) relocation benefits provided
to our Chief Financial Officer.
Name
Company
Contributions
to
Retirement
Savings
(401(k)) Plan
Company
Credits to
Supplemental
Retirement
Savings
Plan
Charitable
Award
Programs Relocation Benefits
Timothy Mayopoulos . . . . . . . . . . . . . . . . . . $ 20,000 $ 60,000 $ — $ —
Michael Williams . . . . . . . . . . . . . . . . . . . . . 5,192 — 3,950 —
Susan McFarland . . . . . . . . . . . . . . . . . . . . . 20,000 51,077 250 28,686
David Benson . . . . . . . . . . . . . . . . . . . . . . . . 12,500 — 850 —
Terence Edwards. . . . . . . . . . . . . . . . . . . . . . 20,000 60,000 — —
John Nichols . . . . . . . . . . . . . . . . . . . . . . . . . 20,000 41,862 5,000 —
In accordance with SEC rules, amounts shown under “All Other Compensation” for 2012 do not include perquisites or personal
benefits for a named executive that, in the aggregate, amount to less than $10,000.
See “Pension Benefits” for the vesting provisions for company contributions to the Retirement Savings Plan and “Nonqualified
Deferred Compensation” for the vesting provisions for company credits to the Supplemental Retirement Savings Plan.
The amount shown in the “Relocation Benefits” column for Ms. McFarland consists of relocation benefits provided to her consisting
of the reimbursement of costs associated with selling her home during 2012. These benefits were provided to Ms. McFarland as part of
a relocation benefit of up to $100,000 that we agreed to provide to her in connection with her hire in July 2011. This benefit expired in
July 2012 in accordance with its terms. We calculated the incremental cost of providing Ms. McFarland’s relocation benefits based on
actual cost (that is, the total amount of expenses incurred by us in providing the benefits), excluding $41 in fees and interest paid to the
relocation benefit administrator.
Amounts shown in the “Charitable Award Programs” column reflect gifts we made under our matching charitable gifts program, under
which gifts made by our employees and directors to Section 501(c)(3) charities are matched, up to an aggregate total of $5,000 for the
2012 calendar year.
(8) Mr. Mayopoulos became our President and Chief Executive Officer on June 18, 2012. He previously served as Fannie Mae’s
Executive Vice President, Chief Administrative Officer, General Counsel and Corporate Secretary from September 2010 through June
17, 2012, and as Fannie Mae’s Executive Vice President, General Counsel and Corporate Secretary from April 2009 to September
2010.
(9) Mr. Williams was our President and Chief Executive Officer from April 2009 through June 17, 2012. He remained employed by the
company as an adviser following his resignation as President and Chief Executive Officer from June 18, 2012 through July 31, 2012.
Because Mr. Williams left the company in July 2012, he did not receive the third or fourth installments of his 2011 deferred salary
(which total $1,433,750) because he was not employed by Fannie Mae on the respective payment dates for those installments. The
amounts reported in this table as Mr. Williams’ 2011 compensation include the $1,433,750 in 2011 deferred salary that he forfeited due
to his departure from the company.
Because of his departure from the company, Mr. Williams also did not receive the second installment of his 2011 long-term incentive
award (which could have been up to $1,000,000) because he was not employed by Fannie Mae on the payment date for that
installment. In addition, because of his departure from the company, Mr. Williams will receive only a portion of his target 2012
deferred salary (which was $2,880,000 in fixed deferred salary and $1,620,000 in at-risk deferred salary). Specifically, he will receive: