Freddie Mac 2015 Annual Report Download - page 419

Compensation Terms - Michael Hutchins - June 24, 2013
Page 2 of 4
Your target total direct compensation (“Target TDC”) will be $2,000,000, which will be pro-rated
in the first calendar year of employment based on your agreed upon hire date. Your Target
TDC will consist of two components - Base Salary and Deferred Salary - which are
summarized below.
Base Salary - Base Salary is paid in cash. The annualized amount of your Base Salary is
$500,000.
Deferred Salary - Deferred Salary is earned on a semi-monthly basis. The amount earned in
each quarter is paid in cash on the last business day of the corresponding quarter of the
following calendar year. The annualized amount of your Deferred Salary is $1,500,000 and is
comprised of the following two components:
• At-Risk Deferred Salary - This portion of your Deferred Salary is equal to thirty percent
(30%) of your Target TDC, or $600,000, up to half of which may be reduced based on the
company’s performance against objectives established by FHFA and up to half of which
may be reduced based on performance against objectives established by Freddie Mac and
your individual performance.
• Fixed Deferred Salary - This portion of your Deferred Salary is equal to your Target TDC
less your Base Salary and At-Risk Deferred Salary, and is equal to $900,000.
II. Benefits
You will be eligible to participate in all employee benefit plans offered to Freddie Mac’s senior
executive officers (as may be modified or terminated from time to time by Freddie Mac in its
sole discretion) pursuant to the terms set forth in the applicable plan. In summary, our current
benefit plans consist of the following:
• Healthcare Coverage - We offer a competitive healthcare program that provides medical,
dental and vision coverage for you and your eligible dependents with several options to
choose from.
• Income Protection - We provide short- and long-term disability income protection, life
insurance, accidental death and personal loss insurance, and business travel accident
insurance.
• Vacation - As an officer, you will accrue 20 days of vacation annually. This equates to
6.46 hours each semi-monthly pay period. You begin accruing vacation starting with your
first full pay period. Beginning in your second calendar year of employment you have the
option to purchase up to five (5) additional days of vacation.
• Thrift/401(k) Savings Plan - You will be able to contribute to our Thrift/401(k) Savings Plan
on a pre-tax and/or after-tax basis. Freddie Mac will begin matching a portion of your
contributions after one year of service at up to six percent of pay. This plan also includes
an annual company discretionary contribution that is based on company performance.