Freddie Freezes Stock, Options of Brendsel & Glenn

Freddie Mac says it is complying with regulators' instructions and has frozen all trading of restricted stock, or the exercise of options, owned by two former executives -- former chairman and chief executive Leland Brendsel, who retired, and former president and chief operating officer David Glenn, who was fired.Freddie Mac's human resources director Mike Hager stressed that the company did not provide Mr. Brendsel with a severance package, even though he worked at Freddie Mac since 1982. However, the former CEO has vested stock options and restricted stock worth $21.1 million. Meanwhile, Mr. Glenn will forfeit $11.2 million in unvested stock options and restricted stock because he was fired, according to the company. Mr. Glenn was fired for failing to cooperate with an internal inquiry into the company's accounting problems. The Office of Federal Housing Enterprise Oversight and the Securities and Exchange Commission asked for the freeze while they investigate Freddie Mac's accounting problems. OFHEO maintains that it has the authority to approve the compensation packages, but Mr. Brendsel's attorney argues otherwise. "We are complying in all respects with OFHEO and SEC," Mr. Hager said. "These executives will not get a nickel more than their 1990 [employment] agreements provide. OFHEO will decide if they get a nickel less." Mr. Glenn's attorney, Tom Vartanian, could not be reached for comment.