New Board Named at Fannie Mae
Thursday, December 25, 2008
Fannie Mae, the District mortgage-finance giant taken over by the government in early September, yesterday announced the members of its newly constituted board of directors.
Joining the 10-person board are a former chief financial officer of Morgan Stanley, David H. Sidwell, and a former superintendent of banks for New York state, Diana L. Taylor. Other new directors include William T. Forrester, former chief financial officer of the Progressive Corp.; Charlynn Goins, former chairman of the board of New York City Health and Hospitals; ; and Egbert L.J. Perry, chief executive of Integral Group.
Directors who have remained on the board include University of Georgia accounting professor Dennis R. Beresford; former Citigroup executive Brenda J. Gaines; and Frederick B. Harvey III, former chairman of the board of a housing nonprofit.
Fannie Mae's government-appointed chief executive, Herbert M. Allison, and government-appointed board chairman, former Ernst & Young chief executive Philip A. Laskawy, also are on the board.
The federal agency in charge of Fannie Mae and Freddie Mac, the Federal Housing Finance Agency, appointed the new directors.
Compensation for directors will no longer include stock awards, a past enticement for people to serve on Fannie's board. Directors receive $160,000 a year, while the chairman will be paid $290,000. Directors can receive up to $25,000 more for leading committees of the board.
Fannie and Freddie have been operating without functioning boards since they were seized by the government. Boards traditionally oversee management decisions about accounting, compensation, business practices and risks, but that role has been largely left to the FHFA, which has signed off on accounting statements and other decisions. Freddie Mac announced its new board Tuesday.
Without boards, the companies risked violating the rules they must follow as public companies and as firms listed on the New York Stock Exchange.
When the government took over Fannie, the chief executive, Daniel H. Mudd, was ousted and the board chairman, Stephen B. Ashley, resigned, as did many other directors.