Golden Parachutes Soften Landing For TopFannie Execs
WASHINGTON - (12/29/04) -- The two top Fannie Mae executivesfired last week for their roles in the growing accounting scandalat the secondary mortgage market giant won't be left out in thecold. Ex-CEO Franklin Raines, who took early retirement, is due toreceive an annual pension of $1.3 million for life, as well as $8.7million in deferred compensation and $5.5 million in the company'sstock, according to a filing Fannie Mae made with the Securitiesand Exchange Commission Tuesday night. And Timothy Howard, thechief financial officer who was also cashiered last week, is owed$4 million in deferred compensation and millions of dollars worthof stock options, and will receive a $36,071 pension for the restof his life. The company's chief regulator, the Office of FederalHousing Enterprise Oversight, is investigating whether thegovernment sponsored enterprise can deny the two executives any ofthe compensation, in light of their participation in allegedaccounting improprieties. OFHEO charged earlier that top Fannie Maeexecutives carefully manipulated the company's financial statementsin order to qualify them for millions of dollars in annualbonuses.