It May Not Be Lipstick On A Pig..But It Sure Is Red.. And It Sure Is “Piggy”

It may not be lipstick on a pig,

but it sure is red, bleeding red, and

it sure is “piggy” behavior.  Perhaps the most egregious we’ve seen.

Richard F. Syron, a former resident of South Natick, joined Freddie Mac in 2003.  This week’s developments in the mortgage titan’s business operations means that Freddie Mac’s CEO will now be added to the running tally of monthly job losses.

According to a report published in today’s Boston Globe Syron’s departure from Freddie Mac may be accompanied by a severance package reportedly in the vicinity of $6.3 million, although an article in the NY Times states Syron’s payout could be at least $14.1 million.

*Photo courtesy of BusinessWeek.com

Syron’s severance package is still being negotiated with the Federal Housing Finance Agency.

While at the helm of Freddie Mac, Syron’s compensation was more than $15 million in salary and bonuses, the Globe reports, according to an executive compensation specialist who has reviewed the Securities and Exchange Commission filings.

The former head of Boston’s Federal Reserve Bank was cited by the NY Times in August for ignoring warning signs. At the time of the NY Times article, many bloggers took issue with many of the Times’ perceived omissions including the pressure put on Fannie Mae and Freddie Mac by Congress to pursue “social missions.”

Syron joined Freddie Mac, following his tenure as chairman of Waltham’s Thermo Electron Corporation, and after chairing the American Stock Exchange. Syron is a former deputy assistant Treasury Secretary, asssistant to Federal Reserve chairman Paul Volker, and president of the Federal Reserve Bank of Boston.

Prior to his arrival, Freddie Mac had revealed that the company had “manipulated earnings by almost $5 billion.”

Richard Syron,  reputedly the first high school graduate in his family,  holder of a Ph.D. in economics from Tufts, unpretentious, politically astute, and with a stellar track record, has apparently indicated that he “doesn’t anticipate receiving nearly that much,” referring to media speculation about his multimillion dollar severance pay package.

In addition, the Wall Street Journal is reporting that a person close to Syron said he is unlikely to take the $8.8 million payment representing compensation for “forfeiting recent equity grants,”  which has been reported as part of the exit package.

YOUR THOUGHTS ???

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* The following information is courtesy of Business Week

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EXECUTIVE PROFILE*

Richard F. Syron
Chairman of the Board and Chief Executive Officer, Freddie Mac

137
137
Age Total Annual Compensation This person is connected to 137 board members in 7 different organizations across 6 different industries.

See Board Relationships

61 $4,650,000 USD
As of Fiscal Year 2007

BACKGROUND*

Richard F. Syron has been Chief Executive Officer and Chairman of Federal Home Loan Mortgage Corporation since December 2003. Mr. Syron serves as Chairman of Woods Hole Oceanographic Institution. He served as Chief Executive Officer of Thermo Electron Corp. from June 1999 to November 2002 and served as its President from June 1999 to July 2000 & as its Chairman of the Board of Directors since January 2000. He served as Chief Executive Officer and Chairman of the Board of Freddie Mac from December 2003 to February 2005. Mr. Syron served as Chairman and Chief Executive Officer of American Stock Exchange Inc. from April 1994 to May 1999. He served as the President of the Federal Reserve Bank of Boston from 1989 to 1994. He served as President of Federal Home Loan Bank of Boston from 1986 to 1989. He served as Executive Chairman of Thermo Fisher Scientific, Inc. (Thermo Electron Corp.), since November 2002. Earlier, Mr. Syron served as assistant to then-Federal Reserve Chairman Paul Volcker and as Deputy Assistant Secretary of the U.S. Treasury Department in Washington D.C. He served as Chairman of the Boston College. He has been Director of Genzyme Corp., since February 28, 2006 and Genzyme Molecular Oncology since February 2006. Mr. Syron has been Director of John Hancock Life Insurance Company since 1995; Genzyme General since 2006; Genzyme Biosurgery since 2006 and Freddie Mac since December 2003. He served as a Director of Nabors Industries Ltd. since 2003 and Mckesson Corporation since March 2002. He served as a Director of John Hancock Financial Services Inc. since 2000 and Thermo Electron Corp. since 1997. He is a Member of the Board of Governors of the American Stock Exchange. He is Trustee of Boston College and serves as Trustee for Woods Hole Oceanographic Institution in Massachusetts. He is the author of approximately 35 publications on a wide variety of economic and financial issues. Mr. Syron earned his Undergraduate Degree at Boston College and received his Master’s and Doctorate in Economics at Tufts University.

CORPORATE HEADQUARTERS*

8200 Jones Branch Drive
McLean, Virginia 22102-3110

United States

Phone: 703-903-2000
Fax: 703-903-2759

BOARD OF DIRECTORS MEMBERSHIPS*

2006-Present
Independent Director, Member of Audit Committee and Member of Nominating & Corporate Governance Committee
2006-Present
Director, Member of Audit Committee and Member of Nominating & Corporate Governance Committee
2006-Present
Independent Director, Member of Audit Committee and Member of Nominating & Corporate Governance Committee
2003-Present
Former Director
2003-Present
Chairman of the Board and Chief Executive Officer
2002-Present
Former Executive Chairman
2002-Present
Former Director
2000-Present
Former Director
Trustee
Chairman
Director

EDUCATION*

Bachelor’s Degree
Boston College
Doctorate
Tufts University
Master’s Degree
Tufts University

ANNUAL COMPENSATION*

Salary $1,200,000
Bonus $3,450,000
Total Annual Compensation $4,650,000

STOCK OPTIONS*

Restricted Stock Awards $8,662,876
All Other Compensation $771,585
Exercisable Options 240,487
Unexercisable Options 222,913
Total Number of Options 463,400

TOTAL COMPENSATION*

Total Annual Cash Compensation $4,650,000
Total Short Term Compensation $4,650,000
Other Long Term Compensation $9,434,461
Total Calculated Compensation $18,289,575
*Data is at least as current as the most recent Definitive Proxy.

Related:

Freddie Mac :Richard F. Syron Bio

Costly Swan Song

Ex Fannie and Freddie CEO’s May Collect Millions

Washington Post Reports

Golden Parachutes of the Past

Waiting for the Dust To Settle

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One Response

  1. I was so made after readying this, I blew out my flipflop!

    Where is integrity in all this? A CEO doesn’t deserve a penny after running a company into the ground. Severance is ludicrous!

    And to have secretary Paulsen assuage the managment’s role by dismissing their direct responsibility? Outrageous!

    http://bh.heraldinteractive.com/news/opinion/editorials/view/2008_09_09_Paying_the_bill_for_failure/

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