A recent report has drawn light to a salary report made by Fannie Mae and Freddie Mac, which lists an amount of $12.8 million in bonuses paid to executives of these two corporations last year. Fannie Mae and Freddie Mac received a federal bailout of $124 billion during the financial crisis, and apparently $95 million of that amount, which came from tax payers pockets, went to executives' pay. In class we talked about CEO compensation and the fact that CEO's get paid so much because they must be highly skilled in order to oversee such big corporations. However, should these executives really be paid such exhorbitant amounts, especially when their salary is coming from tax payers? The House of Financial Services Committee has passed a bill that suspends such pay packages to the executives of Fannie Mae and Freddie Mac. As the committee's chief, Rep. Spencer Bachus eloquently puts it, "Never again should Americans be forced to send their hard-earned tax dollars to be wasted on multi-million dollar pay packages for Fannie and Freddie executives."
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