Federal Housing Finance Agency Print
Home / Supervision & Regulation / Federal Register / Golden Parachute and Indemnification Payments

Golden Parachute and Indemnification Payments

Open Date:
Open for comment
All comments are due by
Final Rule
Fannie Mae; FHLBanks; Freddie Mac; Office of Finance
Document Number:
12  CFR Part 1231
CFR Description:
Federal Register Publish Date:
View Document:
Contact Information:

FOR FURTHER INFORMATION CONTACT: Alfred Pollard, General Counsel, (202) 649-3050, Alfred.Pollard@fhfa.gov; Lindsay Simmons, Assistant General Counsel, (202) 649-3066, Lindsay.Simmons@fhfa.gov; or Mary Pat Fox, Manager for Compensation, Division of Enterprise Regulation, (202) 649-3215, MaryPat.Fox@fhfa.gov. These are not toll-free numbers. The mailing address is: Federal Housing Finance Agency, 400 Seventh Street, SW, Washington, DC 20219. The telephone number for the Telecommunications Device for the Hearing Impaired is (800) 877-8339.

Related Documents:

There are currently no related dockets for the selected rule.

SUMMARY: The Federal Housing Finance Agency (FHFA) is amending its golden parachute payments regulation to better align it with areas of FHFA’s supervisory concern and reduce administrative and compliance burdens. This final rule amends a requirement that FHFA review and consent before a regulated entity or the Office of Finance (OF) enters certain agreements to make, or makes, certain payments that are contingent on the termination of an affiliated party, if the regulated entity or the OF is in a troubled condition, in conservatorship or receivership, or insolvent. FHFA’s experience implementing the regulation indicated that it required review of some agreements and payments where there was little risk of excess or abuse, and thus that it was too broad.

As amended, the rule will reduce the number of agreements and payments that are subject to FHFA prior review by focusing on those agreements and payments where there is greater risk of an excessive or abusive payment (in general, payments to and agreements with executive officers, broad-based plans covering large numbers of employees (such as severance plans), and payments made to non-executive-officer employees who may have engaged in certain types of wrongdoing). In addition, the rule as amended clarifies the inquiry into possible employee wrongdoing that a regulated entity is required to undertake prior to entering into an agreement to make or making a golden parachute payment. Amendments also revise and clarify other rule procedures, definitions, and exemptions.

DATES:  Effective Date:  January 22, 2019.

Submit a Comment
NOTE: To ensure file attachments are received, make certain file names do NOT include characters such as ~ # % & * { } \ : < > ? / |, that file names are short and concise, and that the file does not exceed 50MB. If you have trouble submitting input or uploading documents to attach to your input, please contact FHFAwebmaster@FHFA.gov or call (202) 649-3031 for assistance.

Privacy Act Notice

This notice is provided pursuant to the Privacy Act of 1974 (Privacy Act), as amended, 5 U.S.C. 552a. The collection of information is to process and/or respond to your complaint, appeal, inquiry, request for information, to review and post comments on proposed rules/regulations, to review feedback received on FHFA proposed or implemented initiatives, and to compile a list of potential vendors and contractors. The records are used in accordance with Systems of Records Notices (SORN), FHFA-3 Correspondence Tracking System, FHFA-20 Telecommunications System, and FHFA-22 Online Forms. You can view these SORNs by clicking here and here and here . Although providing this information is voluntary, failure to provide the requested information may result in your complaint, appeal, inquiry, request, comment, or feedback not being processed and may make it more difficult for FHFA to respond to you.

© 2019 Federal Housing Finance Agency