In 2011, the highest earning executive at Fannie Mae reportedly made $5.3 million, while Freddie Mac’s top executive earned $3.8 million. In 2012, the former FHFA director substantially decreased their annual pay to $600,000.

The argument for increases

According to Watt, salary increases will help attract top talent to opportunities with Freddie Mac and Fannie Mae, as well as retain these individuals as employees. He is reportedly allowing Freddie Mac executives to submit a report regarding desired increases for CEO salaries.

The argument against increases

In response to Watt’s consideration of the issue, Royce responded, “I’m deeply disappointed with Director Watt’s decision to open the door to multi-million dollar salaries at the GSEs, which continue to be propped up by tax payers.”

Under Royce’s legislation, the CEO salaries could reportedly decrease to around $200,000. He is joined in his opposition to the increases by other members of Congress, as well as the Treasury Department.  Fannie Mae and Freddie Mac are currently under a government conservatorship, which was formed under the 2008 bailout, where the two companies received a combined total of $187 billion. At that time, they were placed under the supervision of the FHFA.

If you have questions about your salary or this proposed legislation, contact our office to speak with a trained attorney.

The U.S. Department of Labor is reviewing new legislation to change overtime salary limits.

Right now, exempt executive, admin, and professional workers must earn at least $455 per week. This minimum lets employers skip overtime pay. But this may soon change. U.S. Department of Labor wants to raise the weekly salary floor in stages.

The plan may look like this:

• Week salary minimum rises to $1,090
• Salary will double for exempt job types
• Overtime must be paid if salary falls below the limit

This rise may roll out over 3 years. Employers won’t be able to avoid overtime rules unless they meet the new minimum pay level.

Changes for Highly-Compensated Workers

The legislation also affects highly-paid roles.

The yearly salary exemption may rise to $125,000. This shifts from the current $100,000. The new limit may also adjust for inflation in the future. This keeps the floor updated over time.

Who Is Affected by This Legislation?

The proposal targets these job groups:

• Executive employees
• Administrative employees
• Professional employees
• Highly‑compensated employees

If these workers earn below the new minimum, then overtime rules will apply. Employers must pay extra hours worked over 40 per week.

If you have any questions about the legislation or any other overtime questions, contact us today.

International Shareholder Services Inc. updated how it calculates the Relative Degree of Alignment (RDA). RDA measures CEO pay and performance against peer companies. The 2014 policy now compares 3-year total shareholder return (TSR) rank to 3-year total CEO pay rank within the same peer group. The update aims to make pay scoring clearer and more stable.

Old vs New RDA Calculation Method

• Old method: Used 1-year and 3-year TSR vs pay ranks, weighted 40% and 60%.
• New method: Uses only 3-year TSR vs pay rank for a smoother, simpler score.
  The core comparison remains the same. The biggest change is removing the 1-year scoring weight.

Why This Update Matters

The update supports a growing shift toward long-term rewards. It reduces focus on short results. It encourages companies to align CEO pay with durable peer performance. Many experts say steady metrics build better investor trust. Long-term incentives also lower pay volatility. Companies that reward lasting wins show stronger governance signals.

Agreement and Effective Date

The 2014 U.S. policy changes were approved on November 21, 2013. They applied to shareholder meetings from February 1, 2014 onward. This includes proxy review, pay alignment scoring, and investor vote guidance. The rules continue to influence executive compensation debates linked to shareholder value.