New Fannie Mae CFO To Make $625K

December 1, 2008 8:18 p.m. EST

Washington, DC (AHN) - Fannie Mae said Monday that recently appointed Chief Financial Officer David Johnson will receive an annual salary of $625,000, plus a cash bonus and incentive plan.

Johnson, who was selected last week to fill the role, comes over from Hartford Financial Services Group where he acted as chief financial officer. He replaces Stephen Swad, who left the company in August.

"With his broad and deep financial services and capital markets experience, David will help lead Fannie Mae as we assist the market during this unprecedented correction and weather the challenges facing all financial companies today," said CEO Herbert Allison in a company statement.

Fannie Mae was taken over by the government earlier in the year, put under conservatorship and has received an exorbitant amount of funding from the Treasury.

During all of those moves, spending and compensation were some of the many items discussed in regard to righting the ship. Johnson's salary may come as a bit of a surprise considering it is only slightly less than the $650,000 Swad earned.

Shares of Fannie Mae fell 27.5 percent to 84 cents in Monday trading.