Freddie Mac 2015 Annual Report Download - page 361

Executive Compensation Compensation Discussion and Analysis
Freddie Mac 2015 Form 10-K 359
At FHFA’s recommendation, Freddie Mac and Fannie Mae have aligned their Comparator Groups so that
consistent compensation data is used by both companies for the same or similar senior officer positions.
The Comparator Group used to determine compensation for 2015 consisted of the following companies:
Allstate Citigroup* PNC
Ally Financial Fannie Mae Prudential
AIG Fifth Third Bancorp Regions Financial
Bank of America* The Hartford State Street
Bank of New York Mellon JPMorgan Chase* SunTrust
BB&T MetLife U.S. Bancorp
Capital One Northern Trust Wells Fargo*
* Only mortgage or real estate division-level compensation data from these diversified banking firms may be utilized where
available and appropriate for the position being benchmarked.
The Compensation Committee has determined that these same companies will comprise the 2016
Comparator Group.
ESTABLISHING TARGET TDC
The Compensation Committee developed its 2015 Target TDC recommendations for the eligible NEOs by
reviewing data from the Comparator Group and, as appropriate, alternative survey sources. The
Compensation Committee reviewed market data from the Comparator Group for all NEOs except Mr.
Hutchins. For Mr. Hutchins, the Compensation Committee reviewed survey data covering similar
investment professionals at companies with greater than $100 billion in assets under management
because there was no reasonable match from the Comparator Group.
The Compensation Committee’s 2015 Target TDC recommendation for each of the NEOs was reviewed
and approved by FHFA.
2015 TARGET TDC
The following table sets forth the components of 2015 Target TDC for each of our NEOs. For Mr. Layton,
the amounts represent annualized targets that were in effect for the periods indicated.
2015 Target TDC
Named Executive Officer Base Salary
Fixed
Deferred
Salary
At-Risk
Deferred
Salary Target TDC
Donald H. Layton
From January 1 to June 30, 2015 $ 600,000 $ — $ — $ 600,000
From July 1 to November 24, 2015 750,000 2,050,000 1,200,000 4,000,000
From November 25, 2015 600,000 — — 600,000
James G. Mackey 500,000 1,600,000 900,000 3,000,000
Michael T. Hutchins 500,000 1,250,000 750,000 2,500,000
David B. Lowman 500,000 1,600,000 900,000 3,000,000
William H. McDavid 500,000 1,320,000 780,000 2,600,000
With the exception of Messrs. Hutchins and Layton, the 2015 Target TDC amounts shown above were the
same as in 2014. Mr. Hutchins’s 2015 Target TDC increased 25% compared to 2014 to bring his
compensation closer to the 25th percentile of the market. As discussed in “— Chief Executive Officer