Wednesday, December 29, 2004

Ousted CEO to recieve millions

Franklin Raines, the former CEO of Fannie Mae is set for life with his new pension. Yahoo reports that the deal is not done yet:
Franklin Raines, who was forced out as Fannie Mae's chief executive after five years, is due to receive a pension of $1.3 million a year for life, according to an agreement with the mortgage lending giant.

In documents filed Monday with the Securities and Exchange Commission (news - web sites), Fannie Mae also revealed that Raines has deferred compensation of $8.7 million to be paid out through 2020 and owns more than $5.5 million in the company's stock.

But the deal is not done. Federal regulators have asked Fannie Mae to hold off paying any compensation to Raines until they have time to investigate the package and whether it was appropriate for the federally chartered lender to let Raines retire early rather than be dismissed.
I should note that Franklin Raines was considered to be on the short list for a cabinet position had Senator Kerry won in November.

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