Fannie and Freddie Give Employees Cash
December 26, 2009 9:54 PM
After receiving $112 billion in Treasury aid, Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) decided to give approximately $10 million to ten top executives just for their work in 2009. This controversial move rightfully has caused many people to raise an eyebrow.
These two companies have lost approximately $70 billion in the first nine months of 2009, but still pay the CEO of each company $6 million each year.
The government has encouraged companies to pay in stock in order to aid the recovery of the 2008 crash and economic downfall, yet Fannie and Freddie employees received cash.
AIG (NYSE: AIG)and GM are paying their employees mostly in stock, a stark comparison to Fannie and Freddie's method of payment.
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