WASHINGTON, April 9 (Reuters) - Former Fannie Mae chief executive Daniel Mudd defended his lavish compensation while running the mortgage finance giant and said the company needed to pay handsomely to attract top talent to the firm.
Fannie Mae FNM.N paid top executives about 70 percent of what they could earn at another financial services firm as a nod to the mortgage finance giant’s public policy mission, Mudd said under sharp questioning from the Financial Crisis Inquiry Commission.
“The pay for being in a public service organization unfortunately wouldn’t be sufficient to attract” experienced people to the company, Mudd told commissioner Heather Murren.
Murren replied that three quarters of a “huge amount of money is still a huge amount of money.”
Mudd was paid $13.4 million at Fannie Mae in 2007. (Reporting by Corbett B. Daly; Editing by James Dalgleish)