Fannie 'Compensation Director' Resigns

Anne Mulcahy, the head of Xerox Corp., Stamford, Conn., and the director in charge of Fannie Mae's compensation committee, has resigned from the company's board, effective Oct. 19.Her announced departure comes a day after Citigroup appointed her to its board. However, it also comes at a time when Fannie's regulator is raising serious questions about the mortgage giant's accounting, including the deferment of expenses to achieve bonus compensation targets. (The allegations against Fannie were outlined in a board statement issued Wednesday morning.) Ms. Mulcahy, who could not be reached for comment, chaired Fannie's compensation committee. Acting as a director, she also served on Fannie's audit and executive committees. Fannie Mae had no comment on her departure, though a source close to the company said her leaving is in no way tied to the accounting allegations against the company. At last check Ms. Mulcahy owned 20,981 shares of Fannie Mae stock. Fannie Mae can be found online at http://www.fanniemae.com.