The bill "suspends compensation packages approved for 2015 for the chief executive officers of the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, and any of their affiliates, and reinstates the compensation and benefits previously in effect," the statement said.
Read More »GSE CEO Pay Cap: Is it Justifiable or Is It Unwarranted?
Mel Watt, an Obama appointee who could now be at odds with the Obama Administration if the Vitter-Warren bill gets signed by the President, said in a statement in July that the purpose of the pay raises was to "promote CEO retention, allow reliable succession planning, and ensure the continuity, efficiency and stability" at Fannie Mae and Freddie Mac.
Read More »House Votes to Cap Fannie Mae, Freddie Mac CEO Pay at $600K
S. 2036, also known as the Equity in Government Compensation Act of 2015,was initially scheduled to be voted on by the House in late October, but was postponed due to a hefty lineup of other legislation, including voting on a new Speaker of the House.
Read More »House Postpones Vote on Proposal to Cap Salaries of Fannie Mae, Freddie Mac CEOs
Watt said in a statement in July that the purpose of the pay raises was to "promote CEO retention, allow reliable succession planning, and ensure the continuity, efficiency and stability" at Fannie Mae and Freddie Mac. Watt's predecessor, Ed DeMarco, capped the GSE CEO pay at $600,000 a year more than three years ago after four years of conservatorship.
Read More »Industry Analyst Defends Massive Pay Hike for Fannie Mae and Freddie Mac CEOs
The cap eliminated by Watt slightly more than a month ago was put in place three years ago by then-acting FHFA director Ed DeMarco as a compromise between satisfying the demand for a reduction in those executive salaries while the GSEs remained under conservatorship of the FHFA and maintaining adequate pay for line staff, according to Rood.
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