Freddie Mac 2015 Annual Report Download - page 378

Executive Compensation 2015 Compensation Information for NEOs
Freddie Mac 2015 Form 10-K 376
Thrift/401(k) Plan during the year, but not to exceed two times the NEO's Base Salary. We believe the
SERP Benefit is an appropriate benefit because offering such a benefit helps us remain competitive with
the companies in our Comparator Group. Participants are credited with earnings or losses in their SERP
Benefit accounts based upon each participant’s individual direction of the investment of such notional
amounts among the virtual investment funds available under the SERP, which are the same as the
investment options available under the Thrift/401(k) Plan.
To be eligible for the SERP Benefit, the NEO must be eligible for matching contributions and the 2.5%
contribution under the Thrift/401(k) Plan for part of the year, as discussed in Footnote 5 to the Summary
Compensation Table. In addition, to be eligible for the portion of the SERP Benefit attributable to employer
matching contributions, the NEO must contribute the maximum amount permitted under the terms of the
Thrift/401(k) Plan on a pre- or post-tax basis.
SERP Benefits are generally distributed in a lump sum 90 days after the end of the calendar year in which
a separation from service occurs. A six-month delay in the commencement of distributions on account of
a separation from service applies to key employees, in accordance with Internal Revenue Code
Section 409A. If the NEO dies, the vested SERP Benefit is paid in the form of a lump sum within 90 days
of death.
The following table shows the contributions, earnings, withdrawals and distributions, and accumulated
balances under the SERP Benefit for each NEO.
Name
Executive
Contribution in
Last FY ($)(1)
Freddie Mac
Accruals in
Last FY ($)(2)
Aggregate
Earnings in
Last FY ($)(3)
Aggregate
Withdrawals/
Distrib. ($)
Aggregate
Balance at
Last FYE ($)(4)
Mr. Layton
SERP Benefit $ — $ 33,409 $855 $ — $ 90,601
Mr. Mackey
SERP Benefit — 62,149 53 — 75,761
Mr. Hutchins
SERP Benefit — 55,657 79 — 100,889
Mr. Lowman
SERP Benefit — 62,149 (2,276) — 104,138
Mr. McDavid
SERP Benefit — 62,149 154 —172,595
(1) The SERP does not allow for employee contributions.
(2) Amounts reported reflect accruals under the SERP Benefit during 2015, including accruals for the plan year 2015 2.5%
contribution which will be allocated to NEO accounts in 2016. These amounts are also reported in the “All Other
Compensation” column in the Summary Compensation Table.
(3) Amounts reported represent the total interest and other earnings credited to each NEO under the SERP Benefit.
(4) Amounts reported reflect the accumulated balances under the SERP Benefit for each NEO and include the plan year 2015
2.5% contribution which will be allocated to NEO accounts in 2016. All NEOs are fully vested in their SERP Benefit account
balances.
The following 2014 SERP Benefit accrual amounts were reported in the “All Other Compensation” column in the 2014
Summary Compensation Table as compensation for each NEO for whom accruals were made and reported during 2014: Mr.
Layton: $32,111, Mr. Mackey: $13,559, Mr. Lowman: $52,275, and Mr. McDavid: $80,835. See our Form 10-K for the fiscal year
ended December 31, 2014 filed on February 19, 2015. The following 2013 SERP Benefit accrual amounts were reported in the
“All Other Compensation” column in the 2013 Summary Compensation Table as compensation for each NEO for whom
accruals were made and reported during 2013: Mr. Layton: $20,527 and Mr. McDavid: $29,413. See our Form 10-K for the
fiscal year ended December 31, 2013 filed on February 27, 2014.