Freddie Mac, officially known as the Federal Home Loan Mortgage Corporation, plays a crucial role in the U.S. housing finance system. As one of the leading government-sponsored enterprises (GSEs), Freddie Mac works to stabilize the housing market by ensuring liquidity, stability, and affordability in mortgage financing. At the helm of this organization is Mike Hutchins, who currently serves as the President and Interim CEO.
In this article, we’ll explore Mike Hutchins’ career, his role at Freddie Mac, and a detailed breakdown of his salary and compensation package, along with insights into how his earnings compare to industry standards. This post is designed to provide transparent information for readers looking to understand executive pay at Freddie Mac.
Who Is Mike Hutchins?
Mike Hutchins is a seasoned financial executive with over 30 years of experience in the financial services industry. His leadership and expertise have been instrumental in guiding Freddie Mac through complex challenges in the housing finance sector.
Career Highlights
Hutchins’ professional journey is marked by significant milestones:
Current Role:
- Hutchins serves as the President and Interim CEO of Freddie Mac. He is also a member of Freddie Mac’s Board of Directors and Senior Operating Committee.
Responsibilities:
- Hutchins oversees leaders of Freddie Mac’s core divisions, including:
- Single-Family.
- Multifamily.
- Investments & Capital Markets.
- Enterprise Operations & Technology.
- Previous Experience:
- Co-founder and CEO of PrinceRidge: Hutchins founded PrinceRidge, a boutique investment bank, showcasing his entrepreneurial leadership.
- UBS (1996–2007): Hutchins held various roles at UBS, including Global Head of Fixed Income, Rates & Currencies Group.
- Salomon Brothers (1986–1996): He served in multiple management positions, including Co-head of Fixed Income Capital Markets.
Educational Background
While specific details about Hutchins’ education are not publicly available, his long-standing career in finance reflects strong academic and professional foundations.
Mike Hutchins’ Compensation Breakdown
As the interim CEO of Freddie Mac, Mike Hutchins’ salary and compensation package reflect both his leadership role and the regulatory oversight that governs executive pay at government-sponsored enterprises. Below is a detailed breakdown of his earnings:
1. Base Salary
Mike Hutchins’ base salary remains fixed at $600,000 annually. This portion of his pay provides financial stability and is relatively modest compared to other CEOs in the financial services industry.
2. Deferred Salaries
Deferred salaries make up a significant portion of Hutchins’ compensation package:
- Fixed Deferred Salary: $3,250,000.
- At-risk Deferred Salary: $1,650,000.
Deferred salaries are structured to align Hutchins’ earnings with Freddie Mac’s long-term goals and performance. The at-risk portion is tied to specific performance metrics, ensuring accountability and incentivizing results.
3. Total Current Compensation
Hutchins’ total current compensation for 2025 is $5.5 million, which includes his base salary and deferred salaries.
4. Upcoming Compensation Increase
Starting April 2026, Hutchins’ total compensation will rise to $7 million, representing a 27% increase from his current earnings. This adjustment reflects his contributions to Freddie Mac’s operations and aligns with market expectations.
Comparison to Market Standards
While Hutchins’ total compensation is substantial, it is significantly below the average for CEOs of similar-sized companies in the U.S. market.
Industry Average
- The average CEO compensation for companies of Freddie Mac’s size is $13.55 million annually.
- Hutchins’ current total compensation of $5.5 million is well below this benchmark, highlighting the regulatory constraints on executive pay at Freddie Mac.
Regulatory Oversight
The Federal Housing Finance Agency (FHFA), Freddie Mac’s regulator and conservator, approved Hutchins’ salary increase. This oversight ensures that executive pay aligns with Freddie Mac’s mission and public accountability.
Freddie Mac Financial Performance and CEO Pay
Freddie Mac’s financial performance plays a critical role in determining executive compensation. Hutchins’ earnings are tied to the organization’s ability to meet its goals of providing liquidity, stability, and affordability in the U.S. housing market.
Revenue and Profitability
Under Hutchins’ leadership, Freddie Mac has focused on:
- Expanding access to affordable housing.
- Maintaining liquidity in the mortgage market.
- Improving operational efficiency.
The upcoming compensation increase reflects Hutchins’ contributions to Freddie Mac’s strategic objectives and financial stability.
Comparison with Previous CEOs
To understand Hutchins’ earnings in context, let’s compare his compensation with previous Freddie Mac CEOs:
Diana Reid (Former CEO)
- Diana Reid’s tenure as CEO ended amid restructuring by FHFA Director Bill Pulte.
- Her compensation was higher than Hutchins’ current package, reflecting her longer tenure and experience.
Industry Trends
Freddie Mac’s leadership changes and restructuring efforts have led to adjustments in executive pay, ensuring alignment with the organization’s mission and regulatory requirements.
Public Opinion on CEO Salaries
Executive compensation at Freddie Mac often sparks debate. As a government-sponsored enterprise, Freddie Mac operates under public scrutiny, and its leadership pay must balance competitive industry standards with accountability to taxpayers.
Supporters’ Perspective
- High executive pay is necessary to attract and retain top talent in the financial services industry.
- Hutchins’ compensation aligns with Freddie Mac’s financial performance and strategic goals.
Critics’ Perspective
- Critics argue that executive pay at Freddie Mac should be lower due to its public mission.
- The gap between CEO earnings and median employee salaries raises concerns about income inequality.
CEO Pay Ratio and Employee Compensation
Freddie Mac’s CEO pay ratio reflects the disparity between executive and employee earnings:
- Median Employee Pay: Freddie Mac’s employees earn competitive salaries, but the CEO-to-employee pay ratio remains a topic of discussion.
Key Insights into CEO Compensation
Understanding CEO compensation requires a closer look at the factors influencing executive pay:
- Performance-Based Pay: Hutchins’ deferred salaries are tied to Freddie Mac’s financial and operational performance.
- Regulatory Oversight: FHFA approval ensures transparency and alignment with Freddie Mac’s mission.
- Market Competition: Hutchins’ pay is below industry averages, reflecting Freddie Mac’s unique position as a GSE.
Conclusion
Mike Hutchins, the President and Interim CEO of Freddie Mac, earns a total compensation package of $5.5 million, which will increase to $7 million in April 2026. His earnings reflect his leadership role, contributions to Freddie Mac’s strategic objectives, and regulatory oversight by the FHFA.
While Hutchins’ compensation is below the industry average for CEOs of similar-sized companies, it aligns with Freddie Mac’s mission and public accountability. For readers seeking transparency in executive pay, this article highlights the importance of understanding the factors influencing CEO compensation at Freddie Mac.
FAQs
- Who is Mike Hutchins?
Mike Hutchins is the President and Interim CEO of Freddie Mac, overseeing its core divisions and strategic operations. - What is Mike Hutchins’ annual salary?
Hutchins earns a base salary of $600,000, with deferred salaries bringing his total compensation to $5.5 million.
- How much will Hutchins earn starting April 2026?
His total compensation will increase to $7 million, reflecting a 27% boost.
- How does Hutchins’ pay compare to industry standards?
Hutchins’ compensation is significantly below the average of $13.55 million for CEOs of similar-sized companies.
- Why is Freddie Mac CEO pay regulated?
The FHFA oversees executive pay at Freddie Mac to ensure alignment with its public mission and accountability to taxpayers.