Royce-Vitter GSE CEO Salary Cap Signed Into Law
Today, President Barack Obama signed legislation modeled on H.R. 2243, the Equity in Government Compensation Act of 2015, as introduced by U.S. Representative Ed Royce (R-Calif.). The bill, which caps the salaries of the CEOs of Fannie Mae and Freddie Mac, is the first major standalone legislation enacted that deals with the GSEs since they were placed into conservatorship.
Rep. Royce introduced the Equity in Government Compensation Act of 2015 on May 8, 2015, and it passed out of the House Financial Services Committee by a 57-1 vote on July 29, 2015. U.S. Senator David Vitter (R-La.) authored the Senate version of the bill that passed the Senate by unanimous consent on September 15, 2015. Both Rep. Royce's bill as amended and Sen. Vitter's legislation suspend the recently announced $4 million a year compensation packages for the CEOs at Fannie Mae and Freddie Mac and limit their total compensation to the prior level of $600,000 a year each.