Freddie Mac 2011 Annual Report Download - page 325

All Deferred Salary paid following a Covered Officer’s termination of employment will be paid on the same
quarterly schedule as if the Covered Officer had not terminated employment.
2012 Target Total Direct Compensation
In establishing each Named Executive Officer’s 2012 Target TDC, the Compensation Committee reviewed 2011 data
from the Comparator Group and two alternative survey sources. Specifically, for the positions of CEO, CFO, EVP —
Single-Family Business, Operations and Technology and EVP — Chief Enterprise Risk Officer, the Compensation
Committee, at the recommendation of Meridian Compensation Partners, LLC, or Meridian, reviewed competitive market
compensation data from the Comparator Group. For the position of EVP — Chief Administrative Officer, the
Compensation Committee, also at the recommendation of Meridian, reviewed competitive market data from surveys
published by Aon Hewitt and McLagan, because no reasonable match was available in the Comparator Group.
In December 2011, the Compensation Committee applied the criteria described below under “EXECUTIVE
COMPENSATION — Compensation Discussion and Analysis — Executive Management Compensation Program —
Elements of Compensation and Total Direct Compensation — Establishing Target TDC” to either develop 2012 TDC
recommendations for each of the Named Executive Officers or review recommendations presented by senior management.
The 2012 Target TDC recommendation for each of the Named Executive Officers was reviewed by FHFA. While the
Compensation Committee’s 2012 Target TDC recommendations for our Named Executive Officers, in the aggregate, were
below the 25th percentile of the competitive market, FHFA instructed the Compensation Committee to reduce the Target
TDC for each of the Named Executive Officers by 10%, with the exception of Ms. Wisdom. For Ms. Wisdom, 2012
Target TDC is unchanged from 2011 in consideration of the expansion in the scope of her responsibilities during 2011
resulting from the integration of the credit risk management function in her division. For Mr. Weiss and Ms. Wisdom, the
Compensation Committee increased Base Salary by 10%, with an equal decrease in Deferred Salary, to create more
consistent Base Salary levels for EVPs who have comparable levels of responsibility.
The following table sets forth the components of compensation on an annual basis for each of our Named Executive
Officers.
Table 75 — 2012 Program Target Compensation Amounts
Named Executive Officer Title
2012
Base Salary
Fixed
Portion
At-Risk
Portion Target TDC
2012 Deferred Salary
Charles E. Haldeman, Jr. . . CEO $900,000 $2,880,000 $1,620,000 $5,400,000
Ross J. Kari. . . . . . . . . . . EVP — CFO 675,000 1,530,000 945,000 3,150,000
Anthony N. Renzi . . . . . . EVP — Single-Family Business, Operations and
Technology
500,000 1,232,500 742,500 2,475,000
Jerry Weiss . . . . . . . . . . . EVP — Chief Administrative Officer 495,000 891,000 594,000 1,980,000
Paige H. Wisdom . . . . . . . EVP — Chief Enterprise Risk Officer 467,500 757,500 525,000 1,750,000
2012 Conservatorship Scorecard
On March 8, 2012, FHFA instituted a scorecard for use in the new compensation program. The scorecard is
applicable to both Freddie Mac and Fannie Mae and establishes the following objectives and performance targets/
measures for 2012. These objectives and performance targets/measures will be used in determining the amount payable to
Covered Officers with respect to one-half of the at-risk portion of 2012 Deferred Salary.
The scorecard scoring will be based not only on the ultimate accomplishment of results but also our cooperation,
relative contribution and collaboration with the Board of Directors, FHFA, Fannie Mae, and market participants, as
appropriate to the particular measure. FHFA will consider our creativity, collaboration, effectiveness, and commitment to
the particular matter. Most goals have a target date of completion of December 31, 2012. However, if we are able to
accomplish the goal earlier in the year that will be taken into consideration in the scoring to offset shortfalls elsewhere.
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