Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 333

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 15
Chunk 333
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 considering the nature and extent of our specific relationship with this organization, our Board of Directors concluded that this relationship does not constitute a material relationship between Mr. Herbert and Freddie Mac that would impair his independence as our director.

n    Board Memberships with Business Partners. Messrs. Chavers, Drummond, Gillani, Herbert, and Merrill serve as directors of other organizations that engage in business with Freddie Mac resulting in payments between Freddie Mac and such organizations. After considering the nature and extent of the specific relationship between each of those organizations and Freddie Mac, and the fact that these Board members are directors of these other organizations rather than employees, our Board of Directors concluded that these business relationships do not constitute material relationships that would impair their independence as our directors.

n    Financial Relationships with Business Partners. Messrs. Bloom, Gillani, Grier, and Hayden each own stock in companies with which Freddie Mac conducts significant business, and such ownership represents a material portion of their respective net worth. To eliminate any potential conflict of interest that might arise as a result of their respective stock ownership, we have established mechanisms pursuant to which they will be recused from discussing and acting upon any matters considered by the Board of Directors or any of the committees of which they are or were members and that directly relate to the company in which they have such stock ownership. In situations where matters are frequently presented to the Board of Directors regarding these companies, we have established formal recusal arrangements. The Audit Committee Chair, in consultation with the Non-Executive Chair (or the Non-Executive Chair alone in a situation involving the Audit Committee Chair), addresses any questions regarding whether recusal from a particular discussion or action is appropriate. 

    In evaluating the independence of Messrs. Bloom, Gillani, Grier, and Hayden in light of their stock ownership in Freddie Mac business partners, our Board of Directors considered the nature and extent of Freddie Mac's business relationships with such business partners and any potential impact that their respective stock ownership may have on their independent judgment as our directors, taking into account the relevant recusal mechanisms. Our Board of Directors concluded that these mechanisms addressed any actual or potential conflicts of interest with respect to the stock ownership. Accordingly, our Board of Directors concluded that the stock ownership in Freddie Mac business partners by Messrs. Bloom, Gillani, and Hayden do not, and by Mr. Grier did not, constitute material relationships that would impair their independence as our directors. 

FREDDIE MAC  |  2024 Form 10-K226