Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 368

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 15
Chunk 368
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 - Other Executive Compensation Considerations - Stock Ownership, Hedging, and Pledging Policies. Employees and directors who acquired Freddie Mac securities prior to their employment or appointment; by gift, inheritance, or merger; or in violation of Freddie Mac policies may divest provided: (i)The security holder submitted the transaction for pre-clearance by the Compliance department; (ii)The transaction occurs during the window period, a period of five-weeks after releasing the previous quarter’s earnings as determined by the Legal division; and (iii)The security holder is not in possession of any related material non-public information.For additional information on our insider trading arrangements and policies, see our Codes of Conduct for employees and directors, filed as Exhibits 14.1 and 14.2 to this Form 10-K.

FREDDIE MAC  |  2024 Form 10-K249

Executive CompensationCompensation Discussion and Analysis

Legal, Regulatory, and Conservator Restrictions on Executive Compensation

The amount of compensation we may pay our NEOs is subject to a number of legal, regulatory, and conservator restrictions, particularly while we are in conservatorship. Conservatorship also significantly affects the process by which the CHC Committee determines our executive officers’ compensation. We describe below legal and regulatory requirements that significantly affect our executive compensation program and policies.

Requirements Applicable During Conservatorship

While we are in conservatorship, we are subject to additional legal and regulatory requirements relating to our executive compensation, including the following:

n     Equity in Government Compensation Act. The Equity in Government Compensation Act of 2015 limits the compensation and benefits for our CEO to the same level in effect as of January 1, 2015, while we are in conservatorship or receivership. This law also provides that compensation and benefits for our CEO may not be increased while we are in conservatorship or receivership. Accordingly, annual direct compensation for our CEO is limited to Base Salary at an annual rate of $600,000. See Executive Compensation - CD&A - CEO Compensation for additional information.

n     STOCK Act. Pursuant to the STOCK Act and related FHFA regulations, our senior officers, including our NEOs, are prohibited from receiving bonuses during conservatorship. FHFA defines a bonus as a payment that rewards an employee for work performed, where details of the award (such as the decision to grant it or its amounts) are determined after the performance period using discretion or inherently subjective measures.

n     FHFA Instructions – Executive Compensation.