House Republicans are pointing out that Fannie Mae’s new chief financial officer shares something in common with a newly drafted pro football player — both landed signing bonuses.
Susan McFarland received $1.7 million for joining the mortgage giant that continues to lose billions of dollars after three years in government conservatorship, according to a draft report from the House Oversight and Government Reform Committee, which is holding a hearing into compensation practices at Fannie Mae and Freddie Mac Wednesday.
Fannie provided the sign-on bonus to offset compensation McFarland forfeited by leaving an executive position at Capital One, according to a Securities and Exchange Commission filing in June. In addition to the signing bonus, McFarland got a compensation package worth as much as $3.2 million.
“This is a standard approach to these situations in the financial services industry, where many executives receive equity grants as part of their compensation,” said Fannie spokeswoman Amy Bonitatibus. “It is not reasonable to expect executives to give up equity value they would get by staying at their current job to join us.”