Why Are Freddie And Fannie CEO’s Receiving Compensation Instead Of Being Held Accountable?

Normally I find most arguments against a particular CEO’s compensation to be knee-jerk and populist as it seems to be more about a visceral reaction to the amount then the value delivered to shareholders, after all it’s rare that someone expresses the compensation as a % of value delivered. This is not to say that some pay packages aren’t ridiculous just noting where I think certain arguments come from; regardless it’s up to the shareholders to police it not the government.

However in this case…………

By mismanaging their respective companies to the point of needing a taxpayer funded bailout Daniel Mudd and Richard Syron have effectively stolen from the American people, why these clowns weren’t given anything more than a 20 day old moldy sandwich and a kick in the a** is beyond me. Instead of allowing their severance packages to be paid the government should be doing something to hold them accountable, not handing them (what is effectively tax payer money) as a reward for getting the sack.

Disclosure: at the time of publishing the author didn’t own a position in any of the companies mentioned in this article; the ideas expressed are solely the opinions of the author and shouldn’t be viewed as financial or investment advice. The author doesn’t advocate that incompetent CEOs be kicked in the a**, nor does he support the feeding of moldy food to individuals he deems unsavory and/or incompetent.

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Comment by Jail them all

2008-09-12 04:49:46

This is making me really upset! They get tens of millions for bringing GSEs down! Now I want a job just like that.

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