Fannie Mae 2014 Annual Report Download - page 178

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Determination of 2014 Compensation
Summary of 2014 Compensation Actions
The table below displays the 2014 compensation targets compared to actual amounts for each of our named executives. 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 2014, 2013
and 2012.”
2014 Corporate
Performance-Based At-
Risk Deferred Salary ($)
2014 Individual
Performance-Based At-
Risk Deferred Salary ($) Total ($)
Named Executive
2014 Base
Salary
Rate ($)
2014 Fixed
Deferred
Salary ($) Target Actual Target Actual Target Actual
Timothy Mayopoulos . . . 600,000 — — — — — 600,000 600,000
President and Chief
Executive Officer
David Benson . . . . . . . . . 600,000 1,500,000 450,000 450,000 450,000 450,000 3,000,000 3,000,000
Executive Vice
President and Chief
Financial Officer
Andrew Bon Salle(1) . . . . 476,233 860,385 286,154 286,154 286,154 286,154 1,908,926 1,908,926
Executive Vice
President—Single-
Family Business
Terence Edwards . . . . . . 500,000 1,264,000 378,000 378,000 378,000 359,100 2,520,000 2,501,100
Executive Vice
President and Chief
Operating Officer
John Nichols. . . . . . . . . . 450,000 950,000 300,000 300,000 300,000 285,000 2,000,000 1,985,000
Executive Vice
President and Chief
Risk Officer
__________
(1) Effective December 14, 2014, in connection with his promotion to Executive Vice President—Single-Family Business and as approved
by FHFA, Mr. Bon Salle's annual base salary rate increased from $475,000 to $500,000, his fixed deferred salary increased from an
annual rate of $855,000 to an annual rate of $1,110,000, and his at-risk deferred salary target increased from an annual target of
$570,000 to an annual target of $690,000.
Assessment of Corporate Performance on 2014 Conservatorship Scorecard
Overview
In May 2014, FHFA announced the 2014 conservatorship scorecard, a set of corporate performance objectives and related
targets for 2014. The elements of the 2014 conservatorship scorecard are shown below under “FHFA Assessment.” The 2014
conservatorship scorecard provides the implementation roadmap for FHFA’s strategic plan for Fannie Mae and Freddie Mac.
See “Business—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 2014 at-risk deferred salary, or 15% of their overall 2014 total target
direct compensation, was subject to reduction based on FHFA’s assessment of the company’s performance against the 2014
conservatorship scorecard.
As part of the 2014 conservatorship scorecard, FHFA determined that, for all scorecard items, the company’s performance
would be assessed based on the following criteria:
• The extent to which Fannie Mae conducts initiatives in a safe and sound manner consistent with FHFA’s
expectations for all activities;
• The extent to which the outcomes of Fannie Mae’s activities support a competitive, resilient, and liquid secondary
mortgage market to the benefit of homeowners and renters;