Looks like someone’s trying to pull out while they’re still ahead: Fannie Mae’s CEO Michael Williams announced yesterday he’ll be resigning as soon as his replacement is appointed.
Although no specific reasons have been cited for his departure, we think it may have something to do with scrutiny from all those hefty paychecks, including his 2011 pay, estimated to be close to $6 million. This news, of course, is in addition to the continued losses reported, including a third-quarter loss of $5.1 billion.
In November, for the third quarter, Fannie had to request more funds from the Treasury, totaling $7.8 billion, bringing its total bailout to $112.6 billion in taxpayer money.
Williams’ announcement comes just three months after its sister government-dependent company Freddie Mac’s CEO Ed Haldeman announced he’d be retiring at some point in 2012. Interestingly, Haldeman will also be collecting $6 million for 2011.
These resignations should push taxpayers and real estate industry advocates to be more demanding to ensure their replacements a) have their salaries tied more closely to the performance of their organizations and b) work to salvage the industry while paying back the government bailout money. Lastly, they should hire ethical, professional executive staff unlike the former executives of these currently being charged with securities fraud.
Who’s hoping those in next-in-charge will not abuse their powerful positions? RE-Insider sure is.