Regulator Moves to Rein in Exec Pay

[wicket]

http://story.news.yahoo.com/news?tmpl=story&cid=568&ncid=568&e=11&u=/nm/20050404/bs_nm/financial_gses_dc_1

The U.S. regulator of Fannie Mae and Freddie Mac on Monday issued a rule meant to improve corporate governance after multibillion-dollar accounting scandals at the housing finance giants.

Under the final rule, the Office of Federal Housing Enterprise Oversight would require compensation for the companies' executives, directors and employees to be "reasonable and appropriate."

Compensation must be based on factors that go beyond the companies' ability to generate earnings, according to the rule. Also, senior officers would be required to return their compensation if an accounting problem leads to an earnings restatement, OFHEO said.

The changes to federal regulation stem from OFHEO's investigations into Fannie and Freddie. The rule becomes final once published in the Federal Register.

[xchrom]

1. they'll do so now that their pants are down

wait til nobody is looking again.

fannie mae etc has been deregulated too much!
until they are move further back under the government wing the ground will remain fertile for corruption.

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2. kick

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