Fannie Mae 2013 Annual Report Download - page 186

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Determination of 2013 Compensation
Summary of 2013 Compensation Actions
The table below displays the 2013 compensation targets compared to actual amounts for each of the named executives who
remains with Fannie Mae. This table is presented on a different basis from, and is not intended to replace, the Summary
Compensation Table required under applicable SEC rules, which is included below under “Compensation Tables—Summary
Compensation Table for 2013, 2012 and 2011.”
2013 Corporate
Performance-Based At-
Risk Deferred Salary ($)
2013 Individual
Performance-Based At-
Risk Deferred Salary ($) Total ($)
Named Executive
2013 Base
Salary Rate
($)
2013 Fixed
Deferred
Salary ($) Target Actual Target Actual Target Actual
Timothy Mayopoulos(1) . . 600,000 — — — — — 600,000 600,000
President and Chief
Executive Officer
David Benson(2) . . . . . . . . 574,795 1,436,462 430,615 409,085 430,615 409,085 2,872,487 2,829,427
Executive Vice
President and Chief
Financial Officer
Terence Edwards . . . . . . . 500,000 1,264,000 378,000 359,100 378,000 378,000 2,520,000 2,501,100
Executive Vice
President and Chief
Operating Officer
Bradley Lerman . . . . . . . . 450,000 950,000 300,000 285,000 300,000 300,000 2,000,000 1,985,000
Executive Vice
President—General
Counsel and Corporate
Secretary
John Nichols . . . . . . . . . . 450,000 950,000 300,000 285,000 300,000 285,000 2,000,000 1,970,000
Executive Vice
President and Chief
Risk Officer
__________
(1) Mr. Mayopoulos became our Chief Executive Officer in June 2012. Effective January 1, 2013, his total direct compensation was
reduced to $600,000, consisting only of base salary. See “Compensation Tables—Summary Compensation Table for 2013, 2012 and
2011” for information regarding deferred salary Mr. Mayopoulos earned in 2012, which was paid to him in 2013.
(2) Effective April 3, 2013, in connection with his promotion to Chief Financial Officer, Mr. Benson’s annual base salary rate increased
from $500,000 to $600,000, his fixed deferred salary increased from an annual rate of $1,264,000 to an annual rate of $1,500,000, and
his at-risk deferred salary target increased from an annual target of $756,000 to an annual target of $900,000.
Assessment of Corporate Performance on 2013 Conservatorship Scorecard
Overview
In March 2013, FHFA announced the 2013 conservatorship scorecard, a set of corporate performance objectives and related
targets for 2013. The elements of the 2013 conservatorship scorecard are shown below under “FHFA Assessment.” The 2013
conservatorship scorecard provides the implementation roadmap for FHFA’s strategic plan for Fannie Mae and Freddie Mac.
See “Executive Summary—Helping to Build a Sustainable Housing Finance System” for a description of FHFA’s strategic
goals for the enterprises. FHFA developed these objectives and related targets with input from management and the Board of
Directors. Half of each named executive’s 2013 at-risk deferred salary, or 15% of their overall 2013 total target direct
compensation, was subject to reduction based on FHFA’s assessment of the company’s performance against the 2013
conservatorship scorecard.
As part of the 2013 conservatorship scorecard, FHFA determined that, for all scorecard items, the company’s performance
would be assessed based on the following criteria: