RFI issued on GSE executive compensation

The Federal Housing Finance Agency (FHFA) has issued a request for input (RFI) on executive compensation at Fannie Mae, Freddie Mac (the Enterprises), and the Federal Home Loan Banks (FHLBanks). Feedback is due by Aug. 9, 2021.

“The information gathered from the RFI will help FHFA ensure transparent and appropriate executive compensation policies at the regulated entities,” FHFA Director Mark Calabria said in a release. “Compensation policies must balance the need for FHFA’s regulated entities to attract and retain talent while focusing on and fulfilling their core mission responsibilities. This review will be done in a way that emphasizes safety and soundness, protects taxpayers, and enhances financial stability in the housing system.”

The FHFA is requesting information that will enhance the agency’s oversight of executive compensation as required by the Housing and Community Development Act of 1992 and the Housing and Economic Recovery Act of 2008.

Questions included in the RFI are designed to enhance the agency’s ability to fulfill its responsibilities and ensure the Enterprises and FHLBanks operate in a safe and sound manner and fulfill their statutory mission while also limiting executive officers to reasonable and comparable compensation, considering relevant factors such as their status as government sponsored enterprises, their public missions, and their obligation to operate and carry out their activities in the public interest.