The Wall Street Journal-20080131-Fannie Board Sets CEO Compensation

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Fannie Board Sets CEO Compensation

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Fannie Mae said its board set total 2007 compensation of about $12.2 million for its chief executive, Daniel Mudd.

That includes a base salary of $990,000, a bonus of $2.2 million and a long-term incentive award of $9 million. For 2006, Mr. Mudd's total compensation was $14.4 million, according to the government-sponsored mortgage investor.

Hurt along with the rest of the industry by surging defaults on home mortgages, Fannie reported a loss of $1.52 billion for the third quarter. The company hasn't yet reported full-year results.

Mr. Mudd's compensation could be discussed next week when the Senate Banking Committee is expected to hold a hearing on government- sponsored enterprises for the first time in more than a year.