Freddie Mac 2014 Annual Report Download - page 269

264 Freddie Mac
Employer contributions to the Thrift/401(k) Savings Plan are generally available on the same terms to all of our employees. After the first year of
employment, we match up to 6% of eligible compensation at 100% of the employee’s contributions. Employee contributions and our matching
contributions are invested in accordance with the employee’s investment elections and are immediately vested. In addition, employees receive an
additional employer contribution to our Thrift/401(k) Savings Plan equal to 2.5% of compensation earned in the prior year. For 2.5% contributions
made prior to 2015, the employee is 100% vested after completing three years of service. For 2.5% contributions made after 2014, the employee is
100% vested immediately. Amounts for the Thrift/401(k) Savings Plan contributions and Thrift/401(k) SERP Benefit accruals are presented without
regard to vesting status. For additional information regarding the Thrift/401(k) SERP Benefit, see “Nonqualified Deferred Compensation” below.
Employer contributions to the Transitional Plan, a tax-qualified defined contribution plan established effective January 1, 2014, are made on account of
all eligible employees who were (i) participants in the Pension Plan as of its termination date, December 31, 2013; and (ii) employed on the last day of
the plan year (or terminated during the year due to a reduction in force, position elimination, company divestiture, death, disability, or retirement at or
after age 62 or age 55 and completion of 10 years of service). For each eligible employee, the company contributes a percentage of each participant’s
compensation ranging from 0.5% to 6.5%, depending on the age of the participant as of the last day of the plan year (i.e. 0.5% for a participant who is
not yet age 30, 1.5% for a participant age 30 to 39, 4.0% for a participant age 40 to 49, and 6.5% for a participant who is age 50 or older). This
contribution, referred to as the age-based Transitional Employer Contribution, will be made for plan years 2014 - 2018. Transitional Plan participants
will have the 2.5% contribution discussed above allocated to this plan in lieu of the Thrift/401(k) Savings Plan. All contributions made to the
Transitional Plan are 100% vested. Mr. Weiss is the only NEO eligible to participate in the Transitional Plan.
Employer contributions to SERP II, which was approved by FHFA on February 18, 2015 and effective as of January 1, 2014, are made on account of
all eligible participants impacted by the Internal Revenue Code limits. All SERP II accruals are 100% vested. Mr. Weiss is the only NEO eligible to
participate in SERP II for 2014. For information on SERP II, see Item 9B. “Other Information” above and “Nonqualified Deferred Compensation —
Supplemental Executive Retirement Plan II” below.
The interest rate for Fixed Deferred Salary earned during 2014 was 0.065%, equal to 50% of the one-year Treasury Bill rate as of December 31, 2013.
Perquisites are valued at their aggregate incremental cost to us. During the years reported, the aggregate value of perquisites received by all NEOs was
less than $10,000. In accordance with SEC rules, amounts shown under “All Other Compensation” do not include perquisites or personal benefits for
an NEO that, in the aggregate, amount to less than $10,000.
Grants of Plan-Based Awards — 2014
The following table contains information concerning grants of plan-based awards to each of the NEOs during 2014. We
are prohibited from issuing equity securities without Treasury’s consent under the Purchase Agreement. No stock awards were
granted during 2014. For a description of the performance and other measures used to determine payouts, see “Compensation
Discussion and Analysis — Executive Management Compensation Program — Elements of Target Total Direct Compensation
(Target TDC),” “— Performance Measures for the Performance-Based Elements of Compensation,” “— Determination of
2014 Target TDC for NEOs,” and “— Determination of Actual 2014 Compensation.”
Table 70 — Grants of Plan-Based Awards — 2014
Estimated Future Payouts Under
Non-Equity Incentive Plan Awards(1)
Name At-Risk Deferred Salary Award Threshold Target/Maximum
Mr. Layton(2) Conservatorship Scorecard $ — $ —
Corporate Scorecard/Individual — —
Total — —
Mr. Mackey Conservatorship Scorecard — 450,000
Corporate Scorecard/Individual — 450,000
Total — 900,000
Mr. Lowman Conservatorship Scorecard — 450,000
Corporate Scorecard/Individual — 450,000
Total — 900,000
Mr. McDavid Conservatorship Scorecard — 390,000
Corporate Scorecard/Individual — 390,000
Total — 780,000
Mr. Weiss Conservatorship Scorecard — 300,000
Corporate Scorecard/Individual — 300,000
Total — 600,000
(1) The amounts reported reflect At-Risk Deferred Salary granted in 2014 which is subject to reduction based on (i) corporate performance against the
Conservatorship Scorecard; and (ii) an officer's individual performance and the company's performance against the Corporate Scorecard goals. The
amount of At-Risk Deferred Salary actually earned can range from 0% of target (reported in the Threshold column) to a maximum of 100% of target
(reported in the Target/Maximum column). Actual At-Risk Deferred Salary amounts earned are reported in the “Non-Equity Incentive Plan
Compensation” column of “Summary Compensation Table — 2014.”
(2) Mr. Layton is not eligible to receive Deferred Salary.
Outstanding Equity Awards at Fiscal Year-End — 2014
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