Fannie Mae Case Assessment: Executive Compensation

This document presents a case study analysis of Fannie Mae's executive compensation practices between 2000 and 2004. It identifies key issues such as perverse incentives, soft landings for executives, pay decoupled from performance, and lack of transparency in retirement payouts. The analysis recommends implementing policies that include clawback provisions for incorrect earnings reports, holding executives accountable for misconduct, linking pay to performance, and ensuring transparency in compensation disclosures. The study emphasizes the importance of ethical leadership and transparent policies to maintain organizational integrity and prevent future issues.