Fannie Mae, the mortgage concern faced with a massive restatement, eliminated cash bonuses for its top executives and said that its top accounting officer stepped down, the company disclosed in a regulatory filing.
In an 8-K filed last week with the Securities and Exchange Commission, the mortgage giant said that its compensation committee and board decided not to pay cash bonuses to the company's executive officers or senior vice presidents for 2004. It said that it will also postpone the payment of company stock under its performance share program until it has "reliable financial data" for prior fiscal years.
The company' principal accounting officer, Leanne G. Spencer, will step down as senior vice president and controller at the end of the month, but will remain in a non-officer capacity until next January, according to the filing.
The company has appointed David C. Hisey to fill Spencer's spot as senior vice president and controller effective Feb. 1. Hisey, 44, joined Fannie Mae as senior vice president for financial controls and operations earlier this month. Prior to joining Fannie Mae, he was managing director and practice leader of the lending and leasing group and vice president of financial services consulting at BearingPoint Inc.
In late December, Fannie Mae ousted two of its top executives and its long-time auditor, KPMG, following a decision by the SEC that it violated accounting rules, leaving the enterprise faced with a massive restatement that could include an after-tax loss of $9 billion.
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