Assets of employees shrink at Fannie Mae and Freddie Mac

The top executive of Freddie Mac, Richard F. Syron, for instance, made about $18.3 million last year, two-thirds of that in stock and options that are worth a lot less today. His counterpart at Fannie Mae, Daniel H. Mudd, made $11.6 million, also much of it in stock.

But mid-level employees were paid in stock, too. Stock and options could account for a fifth of their total compensation, according to former employees and financial planners. Their ability to sell and diversify was often limited by restrictions on the grants, the terms of the specific plans and tighter rules on selling by employees while they addressed years-earlier accounting scandals.

“If it can happen to Fannie or Freddie, it can happen anywhere,” said Marjorie L. Fox, a certified financial planner in Reston, Va. “This is a cautionary tale you better pay attention to.”

For those people participating in the employee stock ownership plans, known as ESOPs, at Fannie Mae — Freddie Mac did not have one — they could do little but watch this year as the stock lost more than three-quarters of its value. In a lament echoing the fallen share prices at other firms like Bear Stearns, employees discovered their stock was essentially locked up. The Fannie Mae plan invests in company stock, allowing diversification to begin only at age 55.

Still, former employees and financial planners say workers have probably been hurt more severely by their holdings of stock and options outside of retirement plans. Richard K. Green, who was a principal economist and a director of financial strategy and policy analysis at Freddie Mac from late 2002 to early 2004, said that about 20 percent of his total compensation was in stock options. “It’s my understanding that for a fair number of people, it was an important part of their retirement planning,” he said. “If you joined in the ’80s, you did fairly well. But if you joined in the last 10 years or so, those options wouldn’t be worth a whole lot to you.”