Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 349

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 15
Chunk 349
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 continue to serve as EVP & Senior Advisor until his retirement in April 2025.

For information on our primary business objectives and the progress we made during 2024 toward accomplishing those objectives, see Introduction - About Freddie Mac and Introduction - Our Business.

Overview of Executive Management Compensation Program

Compensation in 2024 for each NEO, other than Ms. Reid and Mr. DeVito (our current and former CEOs), whose compensation is discussed below, was governed by the EMCP. The EMCP balances our need to attract and retain executive talent with promoting the conservatorship objectives included in FHFA's Conservatorship Scorecard, as well as goals separately established by management related to the commercial aspects of our business, which are included in our Corporate Scorecard. All compensation under the EMCP is delivered in cash because the Purchase Agreement does not permit us to provide equity-based compensation to our employees unless approved by Treasury. 

FHFA has advised us that the design of the EMCP was intended to fulfill and balance three primary objectives:

n    Maintain Lower Pay Levels to Conserve Taxpayer Resources. Given our conservatorship status, the EMCP is designed generally to provide for lower pay levels relative to large financial services firms that are not in conservatorship.

n  Attract and Retain Executive Talent. The EMCP is intended to attract and retain executive officers with the specialized skills and knowledge necessary to effectively manage a large financial services company. Executive officers with these qualifications are needed for the company to continue to fulfill its important role in providing liquidity, stability, and affordability to the housing market. We face competition for qualified executives from other companies. The CHC Committee regularly considers the level of our executive officers’ compensation and whether changes are needed to attract and retain executive officers. See Risk Factors for a discussion of the risks associated with executive retention and succession planning.

n  Reduce Pay if Goals Are Not Achieved. To support FHFA’s goals for our conservatorship and encourage performance in furtherance of these goals, 30% of each NEO’s Target TDC (other than the CEO's compensation) consists of At-Risk Deferred Salary subject to reduction based on corporate and individual performance as reflected in the Conservatorship and Corporate Scorecards.

FREDDIE MAC  |  2024 Form 10-K237

Executive CompensationCompensation Discussion and Analysis

FHFA’s objectives for the EMCP and the legal and regulatory restrictions on our executive compensation described in Executive Compensation - CD&A - Other Executive Compensation Considerations - Legal