House panel votes to cap Fannie, Freddie salaries

The House Financial Services Committee advanced legislation on Wednesday that would cap CEO salaries at Fannie Mae and Freddie Mac.

{mosads}The measure advanced on a 57 to 1 vote, with Rep. Stephen Lynch (D-Mass.) the lone lawmaker to oppose it.

“Multimillion-dollar paydays for the CEOs of Fannie and Freddie represent a failed grasp of reality on the part of both the [government sponsored entities] and their regulator,” said Rep. Ed Royce (R-Calif.), who is the lead co-sponsor on the bill. 

Earlier this month, financial disclosures revealed that Fannie Mae CEO Timothy Mayopoulos and Freddie Mac CEO Donald Layton will each earn compensation of about $4 million.

Royce’s bill would have reduced their salaries to $255,000. That’s the top salary at the Federal Housing Finance Agency (FHFA), which regulates Fannie and Freddie.

An amendment to the bill, though, raised the cap to $600,000.

Updated at 6:48 p.m.