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Executive Compensation

Federal Home Loan Bank System

From 1999 to 2008, the annual compensation of the FHLBank directors was subject to statutory caps. Consequently, the annual maximum compensation for the chairmen of the boards of directors was set at the statutory cap. Although the annual compensation of the other directors varied by position (vice chair, audit committee chair, other committee chairs), it was similar across the FHLBanks.

With the enactment of the Housing and Economic Recovery Act of 2008 (HERA), Congress repealed the statutory caps and authorized the FHLBanks to pay reasonable compensation to their directors, subject to FHFA review.

During 2012, the total fees paid to all FHLBank directors were $12.1 million, ranging from $679,817 for the 14-member board of the FHLBank of Seattle to $1,445,000 for the 18-member board of the FHLBank of Indianapolis. The average compensation for an FHLBank director other than the chairmen ranged from $47,867 at the FHLBank of Seattle to $83,189 at the FHLBank of San Francisco.

For more information on annual Federal Home Loan Bank board of director compensation read FHFA's Annual Report to Congress.

For Federal Home Loan Bank executive compensation, see documents filed with the Securities and Exchange Commission.  Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system – Company Filings

Fannie Mae and Freddie Mac

The targeted executive compensation paid to senior executives of Fannie Mae and Freddie Mac is established after consideration of private sector pay comparability reviews prepared by outside pay consultants retained by the boards of directors and by FHFA, and in consultation by FHFA with the Treasury Department’s Special Master for TARP Executive Compensation. 

For more information on annual Fannie Mae and Freddie Mac executive compensation read FHFA's Annual Reports to Congress.   

Executive Compensation: Final Rule

This final rule sets forth requirements and processes with respect to compensation provided to executive officers by the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Federal Home Loan Banks, and the Federal Home Loan Bank System’s Office of Finance, consistent with the safety and soundness responsibilities of FHFA under the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended by the Housing and Economic Recovery Act of 2008. This final rule affirms the establishment of 12 CFR part 1230 and removal of 12 CFR part 1770 by the interim final rule that is already in effect.  Link to the Final Rule.

Golden Parachute Payments: Final Rule

This final rule amendment (final rule) addresses prohibited and permissible golden parachute payments to entity-affiliated parties in connection with the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, and the Federal Home Loan Banks (regulated entities) as well as the Office of Finance. Additionally, this final rule responds to public comments received by FHFA on the golden parachute payment provisions.  Link to the Final Rule.

2014 Incentive Compensation Plan

The 2014 Incentive Compensation Plan is largely the same as the 2012 plan, with base salary paid semimonthly or biweekly and deferred salary paid out a year later. A new provision that went into effect for the 2013 plan allows those who retire at age 65 or older to have the 2 percent reduction feature waived. See the 2015 Scorecard. ​   

2012 Incentive Compensation Plan

In the 2012 Incentive Compensation Plan, FHFA changed the compensation Fannie Mae and Freddie Mac executives are eligible to earn.

We designed the new plan to provide competitive compensation and retain key managers. It includes a retention feature and reductions for missed performance.

The new plan also included a 10 percent reduction to most executives’ total direct compensation and eliminated bonuses and incentive plans that had been in place. The 2012 program included setting a fixed cash-base salary. The salaries of the new CEOs at both Enterprises were set at $600,000.

Remaining compensation comprises two types of deferred salary—fixed and at-risk.

The fixed portion is paid out in full at the end of the quarter in the following year.

The at-risk deferred salary is equal to 30 percent of the total direct compensation of each executive and may be reduced based on performance of the company and the individual. The first portion subject to reduction (15 percent) is based upon conservatorship performance, as determined by FHFA. FHFA bases our assessment on an evaluation of performance against the Scorecard

The remaining portion subject to reduction (15 percent) is determined by the company. Fannie Mae's and Freddie Mac's assessments are based on goals established by their boards of directors.

The plan also includes a retention tool. If an executive leaves the company, the fixed deferred salary is reduced by 2 percent per month for each month between the date the employee leaves and January one year after the end of the performance year.

The compensation listed in each of Fannie Mae's and Freddie Mac's annual reports as paid in 2013 includes compensation earned in 2013 and deferred compensation earned in prior years but paid in 2013.

Information regarding executive compensation oversight is set forth in the Enterprises’ Form 10-K SEC annual filings. 

Enterprise Reports to Congress on 2017 Executive Pay


Fannie Mae Executive Pay
Freddie Mac Executive Pay

2016 Enterprise 10-K Filings


See Item 9b. Other Information (and) Item 11. Executive Compensation

Fannie Mae 2016 10-K
Freddie Mac 2016 10-K

Enterprise Reports to Congress on 2016 Executive Pay


Fannie Mae Executive Pay
Freddie Mac Executive Pay

Related Documents


Statement of Acting Director Edward J. DeMarco, Before the U.S. House of Representatives, Committee on Oversight and Government Reform (11/16/2011)

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