Fannie, Freddie execs get $3.4M pay raises

Fannie, Freddie execs get $3.4M pay raises
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The leaders of the government-controlled housing agencies Fannie Mae and Freddie Mac got hefty pay raises on Wednesday, according to new disclosure reports.

Fannie Mae CEO Timothy Mayopoulos and Freddie Mac CEO Donald Layton will each earn target compensation of $4 million, according to disclosures filed with the Securities and Exchange Commission.

Lawmakers had previously capped the controversial government-sponsored entities' executive pay at $600,000.

It comes as Rep. Ed Royce (R-Calif.), a senior member of the House Financial Services Committee, introduced legislation that looks to cap their pay.

He called the multimillion-dollar salaries "egregious as American taxpayers continue to bear the risk" for the agencies.

"We appear to be tip-toeing back to a permanent 'quasi' state for our secondary housing market with private market compensation levels backed by taxpayers," Royce said.