The move, which some are calling a “blank check for their bailouts”, should appear to be a vote of confidence for the firms, though the leaders of the companies still have no interest in owning the stock themselves.
Both Fannie Mae CEO Michael Williams and Freddie Mac CEO Charles Haldeman were given all-cash $6 million annual pay rates for 2009. Other top executives received annual cash payments of $2 million or more each, according to the companies' filings.
The lack of stock and options for Fannie and Freddie executives suggests that when Congress and the Obama administration decide what to do with the mortgage firms, shareholders could be left with little or no equity.
Stocks of Freddie (NYSE: FRE) were up 26 cents, or 20.63 percent, to $1.52. Fannie shares (NYSE: FNM) were up 18 cents, or 17.14 percent, to $1.23.
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