Fannie Mae 2014 Annual Report Download - page 182

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operations to integrate with the common securitization platform and running the company’s business at a high level. The
Committee also favorably recognized management’s efforts to address any issues with the 2014 Board of Directors’ goals on
an ongoing basis, which allowed management to identify and resolve problems throughout the year.
In January 2015, following its review of management’s and the company’s performance in 2014, and after discussions among
all independent members of the Board of Directors, the Compensation Committee recommended and the Board determined
that the individual component of the 2014 at-risk deferred salary should be funded at the 100% level as a result of
management’s significant achievements. The Compensation Committee also provided FHFA with its assessment of
management’s performance against the 2014 Board of Directors’ goals and its qualitative assessment of management’s
performance against the 2014 conservatorship scorecard objectives. See “Assessment of 2014 Individual Performance” below
for information regarding the review by the Compensation Committee and the Board of the named executives’ individual
performance in establishing the individual performance-based component of 2014 at-risk deferred salary.
The table below presents our 2014 Board of Directors’ goals and related metrics, and the assessment of achievement against
these goals and metrics.
Goals and Related Metrics Performance Against Goal/Metric
Goal 1: Achieve key financial targets.
Expenses. Take all appropriate management action to ensure managed
expenses do not exceed 2014 Plan of $2,590 million.
Treasury draws. Take all appropriate management action to ensure there
are no draws from Treasury for 2014.
Achieved this goal. The company’s managed expenses were
$2,464 million in 2014, $126 million below the 2014 Plan.
(Managed expenses exclude $313 million in costs related
primarily to extraordinary litigation and the company’s
efforts to integrate its systems with the CSP, as well as
expense reimbursements relating to its work with Common
Securitization Solutions, LLC and certain costs primarily in
connection with negotiating resolution agreements relating to
its private-label mortgage-related securities.) The company’s
net worth has been positive at the end of each quarter of 2014
and, accordingly, Fannie Mae has not drawn funds from
Treasury for 2014.
Goal 2: Acquire and manage a profitable, high quality book of new
business from 2009 forward.
Manage within risk limits. Ensure businesses are managed within board
risk limits as approved and modified from time to time by the Board of
Directors, including timely remediation of instances where limits are
exceeded and with Board approval for exceptions.
Achieved this goal. Fannie Mae continued to achieve strong
credit performance in 2014. The company acquired single-
family loans with strong credit profiles and executed on its
strategies for reducing single-family credit losses. See
“Business—Executive Summary—Single-Family Guaranty
Book of Business” for information on the credit performance
of Fannie Mae’s single-family loans. Fannie Mae’s
multifamily new business volume in 2014 also reflected loans
with a solid credit profile.