,i  #aad? ,,congress  #a/ ,session  ,h4 
,r4 #bbdc  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,may #h1 #bjae ,mr4   
,royce 7= himself & ,mr4 ,poliqu97      
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,f9ancial ,s]vices1 & 9
 addition to ! ,committee on ,ov]sight &
 ,gov]nm5t ,re=m1 = a p]iod to be       
subsequ5tly det]m9$ by ! ,speak]1 9 ea* 
case = consid]ation ( su* provisions z  
fall )9 ! jurisdiction ( ! committee    
conc]n$  ,a ,,bill  ,to susp5d ! curr5t 
comp5sation packages = ! s5ior          
executives ( ,fannie ,mae & ,fr$die ,mac
 & e/abli% comp5sation = su* positions 9
 accordance ) rates ( pay = s5ior       
employees 9 ! ,executive ,bran* ( !     
,f$]al ,gov]nm5t1 & = o!r purposes4  #a4
 ,%ort title ,?is ,act may be cit$ z !  
,equity 9 ,gov]nm5t ,comp5sation ,act ( 
#bjae4  #b4 ,def9itions ,9 ?is ,act3    
7#a7 ,director ,! t]m ,director means ! 
,director ( ! ,f$]al ,h\s+ ,f9ance      
,ag5cy4  7#b7 ,employee ,! t]m employee 
means an employee ( an ent]prise1 except

 t su* t]m does n include any employee  
:o w\ld be def9$ z a prevail+ rate      
employee 7z def9$ 9 section #ecdb7b7 (  
title #e1 ,unit$ ,/ates ,code7 if su*   
employee 7 employ$ by an ag5cy 7z def9$ 
9 p>agraph 7#a7 ( su* section74  7#c7   
,ent]prise ,! t]m ent]prise means-- 7,a7
 ! ,f$]al ,national ,mortgage           
,association & any affiliate !re(2 &    
7,b7 ! ,f$]al ,home ,loan ,mortgage     
,corporation & any affiliate !re(4  7#d7
 ,executive (fic] ,! t]m executive (fic]
 has ! same mean+ z is giv5 su* t]m 9   
section #acjc7ab7 ( ! ,f$]al ,h\s+      
,ent]prises ,f9ancial ,safety &         
,s\ndness ,act ( #aiib 7#ab ,u4,s4,c4   
#dejb7ab774  #c4 ,reasonable pay =      
executive (fic]s  7a7 ,susp5sion (      
,curr5t ,comp5sation ,packages ,!       
,director %all susp5d ! comp5sation     
packages approv$ = #bjae = ! executive  
(fic]s ( an ent]prise &1 9 lieu ( su*   
packages1 subject to ! limitation "u    
subsection 7c71 e/abli% a comp5sation   
sy/em = ! executive (fic]s ( su*        

ent]prise 9 accordance ) ! s*$ules (    
comp5sation & b5efits e/abli%$ & adju/$ 
pursuant to section #abjf ( ! ,f9ancial 
,in/itutions ,re=m1 ,recov]y1 &         
,en=cem5t ,act ( #aihi 7#ab ,u4,s4,c4   
#ahcc;b74  7b7 ,additional requirem5t   
,an executive (fic] ( an ent]prise %all 
be subject to section #aaa ( ! ,em]g5cy 
,economic ,/abilization ,act ( #bjjh    
7#ab ,u4,s4,c4 #ebba71 :i* relates to   
executive comp5sation & corporate       
gov]nance4  7c7 ,limitation on          
comp5sation ,an executive (fic] ( an    
ent]prise ^: comp5sation package is     
susp5d$ "u subsection 7a7 %all n be     
comp5sat$ m ?an ! highe/ comp5sat$      
employee ( ! ,f$]al ,h\s+ ,f9ance       
,ag5cy4  #d4 ,comp5sation rate (        
employees ( ,fannie ,mae & ,fr$die ,mac 
7a7 ,9 g5]al ,dur+ any p]iod t an       
ent]prise is f$]ally *>t]$ "u ! ,f$]al  
,national ,mortgage ,association ,*>t]  
,act 7#ab ,u4,s4,c4 #agaf et seq47 or ! 
,f$]al ,home ,loan ,mortgage            
,corporation ,act 7#ab ,u4,s4,c4 #adea  

et seq471 ! comp5sation ( ! positions   
held by employees %all be 9 accordance )
 ?is section4  7b7 ,conv]sion (         
comp5sation rate = curr5t employees     
7#a7 ,9 g5]al ,except = z provid$ 9     
section #c1 effective = pay p]iods      
beg9n+ aft] ! date ( ! enactm5t ( ?is   
,act1 ! ,director %all fix ! rate (     
basic comp5sation ( positions held by   
employees p]=m+ s]vices = an ent]prise z
 ( ! date ( ! enactm5t ( ?is ,act 9     
accordance ) ! ,g5]al ,s*$ule set =? 9  
section #eccb ( title #e1 ,unit$ ,/ates 
,code4 ,9 fix+ su* rate--  7,a7 if !    
employee is receiv+ a rate ( basic      
comp5sation t is less ?an ! m9imum rate 
( basic comp5sation ( ! appropriate     
grade ( ! ,g5]al ,s*$ule 9 :i* 8 or h]  
position is plac$1 su* employee's rate (
 basic comp5sation %all be increas$ to  
su* m9imum rate2  7,b7 if ! employee is 
receiv+ a rate ( basic comp5sation t is 
equal to a rate ( basic comp5sation ( ! 
appropriate grade ( ! ,g5]al ,s*$ule 9  
:i* 8 or h] position is plac$1 su*      

employee's rate ( basic comp5sation %all
 be equal to t rate ( basic comp5sation 
( ! appropriate grade ( ! ,g5]al        
,s*$ule2  7,c7 if ! employee is receiv+ 
a rate ( basic comp5sation t is betwe5  
#b rates ( basic comp5sation ( !        
appropriate grade ( ! ,g5]al ,s*$ule 9  
:i* 8 or h] position is plac$1 su*      
employee's rate ( basic comp5sation %all
 be at ! high] ( ^? #b rates "u ! ,g5]al
 ,s*$ule2 &  7,d7 if ! employee is      
receiv+ a rate ( basic comp5sation t is 
9 excess ( ! maximum rate ( basic       
comp5sation ( ! appropriate grade ( !   
,g5]al ,s*$ule 9 :i* 8 or h] position is
 plac$1 su* employee's rate ( basic     
comp5sation %all be r$uc$ to su* maximum
 rate4  7#b7 ,n consid]$ transf]s or    
promotions ,! conv]sion ( positions &   
employees to ! appropriate grades ( !   
,g5]al ,s*$ule & ! initial adju/m5t (   
rates ( basic comp5sation ( ^? positions
 & employees provid$ = by ?is           
subsection1 %all n be consid]$ to be    
transf]s or promotions )9 ! mean+ (     

section #eccd7;b7 ( title #e1 ,unit$    
,/ates ,code1 & ! regulations issu$     
!reund]4  7#c7 ,cr$it = increase 9      
comp5sation be=e adju/m5t ,ea* employee 
p]=m+ s]vices = an ent]prise on ! date (
 ! enactm5t ( ?is ,act ^: position is   
conv]t$ "u ?is subsection to ! ,g5]al   
,s*$ule & :o prior to ! initial adju/m5t
 ( 8 or h] rate ( basic comp5sation "u  
p>agraph 7#a7 has e>n$1 b has n be5     
cr$it$ )1 an increase 9 t rate1 %all be 
grant$ cr$it = su* increase be=e 8 or h]
 rate ( basic comp5sation is initially  
adju/$ "u su* p>agraph4  7#d7 ,s]vice   
p]=m$ s9ce la/ comp5sation increase ,ea*
 employee p]=m+ s]vices = an ent]prise  
on ! date ( ! enactm5t ( ?is ,act ^:    
position is conv]t$ "u ?is subsection to
 ! ,g5]al ,s*$ule %all be grant$ cr$it1 
= purposes ( 8 or h] fir/ /ep increase  
"u ! ,g5]al ,s*$ule1 = all satisfactory 
s]vice p]=m$ s9ce 8 or h] la/ increase 9
 comp5sation prior to ! initial adju/m5t
 ( 8 or h] rate ( basic comp5sation "u  
p>agraph 7#a74  7#e7 ,comp5sation       

increase "u ?is section ,an increase 9 !
 rate ( basic comp5sation by reason ( ! 
enactm5t ( p>agraph 7#a7 %all n be      
consid]$ to be an equival5t increase )  
respect to /ep increases = employees ^: 
positions are conv]t$ to ! ,g5]al       
,s*$ule "u au?ority ( ?is subsection4   
7c7 ,new employees ,except = z provid$ 9
 section #c1 ! grade & rate ( basic pay 
( any individual beg9n+ employm5t ) an  
ent]prise aft] ! date ( enactm5t ( ?is  
,act %all be fix$ 9 accordance ) !      
,g5]al ,s*$ule set =? 9 section #eccb ( 
title #e1 ,unit$ ,/ates ,code4  #e4     
,fannie & ,fr$die employees n ,f$]al    
employees ,any executive (fic] or       
employee affect$ by any provision "u    
sections #c & #d1 respectively1 %all n  
be consid]$ a ,f$]al employee4