House Set to Vote on GSE Pay Cuts

The House Financial ServicesrnCommittee is set to vote on the suspension of compensation packages of toprnexecutives at the two government sponsored enterprises (GSEs) Freddie Mac andrnFannie Mae.  Under HR 1221, The Equity in Government Compensation Act of 2011, top executives would haverntheir compensation set in accordance with rates of pay for senior employees in thernExecutive Branch of the Federal Government. rnOther employees of Fannie and Freddie would be paid according to therngovernment’s General Schedule pay scale. rn</p

The bill wasrnoriginally introduced by CommitteernChairman Spencer Bachus (R-AL) in the 111^th Congress andrnreintroduced earlier this year.  Inrnaddition to the action on compensation, the billrnexpresses the sense of the Congress that the 2010 and 2011 pay packages ofrnFannie Mae’s and Freddie Mac’s senior executives were excessive and that thernmoney should be returned to taxpayers.</p

Accordingrnto a press release from the Bachus office, an April report from the inspectorrngeneral of the Federal Housing Finance Authority revealed that the top sixrnexecutives at Fannie and Freddie had been paid more than $35 million since thernbailout.  Earlier this month, it was reported that 10 executives of thernbailed out enterprises were awarded $12.79 million in bonus pay.</p

Committee action on the bill is scheduled for Tuesday,rnNovember 15. Approval seems likely as all seven of the bill’s cosponsors arernsitting members of the committee.

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