Freddie Mac Flounders; CEO Awarded Millions
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The disaster of the housing market has been well documented. Not only are home being abandoned, as people find that payments are beyond their means, companies like Fannie Mae and Freddie Mac financial trouble that these mortgage companies are in need of government rescue. The people will shoulder the economic burden.
In striking contrast, the Chief Executive Officer of Freddie Mac will be just fine:
“NEW YORK - Freddie Mac Chairman and Chief Executive Richard Syron pocketed nearly $19.8 million in compensation last year, according to a Securities and Exchange Commission filing Friday, even though the mortgage company’s stock lost half its value in 2007.”
link: Freddie Mac CEO got $19.8 million in 2007
What is wrong with this picture? People are losing their homes. Stock value plummets. And the CEO is able to bank tens of millions of dollars.
At the risk of falling in what Senator Gramm might call the “whiners” camp, this just isn’t right. The consequence of being major part of a financial debacle is to be awarded millions and millions of dollars. How can that be justified, in any manner?
Catherine Forsythe
One Comment
E2001
July 21st, 2008
at 6:36am
While the appearance of a CEO grabbing as much cash as possible might piss-off the casual passer-by; it’s really the nature of the beast. When one starts a company, there is really only one intention in mind: “To get as much cash as possible… for ME!”
When an economic institution fails, it is the nature of the big-wigs to bleed said institution for whatever is left, by whatever means possible. So, it should not surprise ANYONE that a person who climbed the corporate ladder for the SOLE PURPOSE of getting rich, ended up with truckloads of cash!
Why would you expect it to end any other way?