Freddie Mac Appoints Eugene M. Mcquade President And Chief Operating Officer
|August 6, 2004|
McLean, VA – Freddie Mac appointed Eugene M. McQuade president and chief operating officer, effective September 1, 2004. The Board of Directors of Freddie Mac also plans to nominate McQuade for election as a member of the Board at Freddie Mac's annual meeting in November. McQuade succeeds Paul T. Peterson as chief operating officer. Peterson will remain with the company as a senior advisor to ensure an orderly transition after which he intends to retire.
McQuade, 55, who will report to Chairman and CEO Richard F. Syron, most recently served as president of Bank of America Corporation. He previously had been president and chief operating officer at FleetBoston Financial Corp. before helping to bring about the April 1, 2004 merger between that company and Bank of America. McQuade joined Fleet in 1992 and became chief financial officer in 1993. He was elevated to vice chairman in 1997 and became president and chief operating officer in 2002.
"We have made good progress at Freddie Mac so far this year in improving our financial reporting and systems and in strengthening our corporate governance, but we are not finished," Syron said.
"There is also much more we can – and will – do to meet our housing mission. Gene McQuade and Patti Cook, who joined Freddie Mac last week as executive vice president of investments, are key people on my team responsible for moving this forward. Their job is to ensure we back up our words with deeds."
"To fulfill our mission both today and for the long term, we need to drive continually for the highest standards of excellence," Syron continued. "I have asked Gene – an experienced executive with a thirty-year track record of success, demonstrated expertise in financial services and the capital markets, superb leadership skills and a strong belief in our mission – to bring operational excellence to everything we do. Gene has demonstrated extraordinary breadth over many years of management, not only leading key business functions but also operating as chief financial officer of a major financial services company. I look forward to having him join our team."
McQuade said, "I am delighted to join Freddie Mac, a leading financial institution with an important public mission. My goal is to partner with Dick, the management team and the Board to ensure that we execute efficiently and effectively to deliver value to homeowners and shareholders. I look forward to serving under Dick's leadership and helping guide Freddie Mac into the future."
Syron said, "Freddie Mac is grateful to Paul Peterson for his 15 years of service. He has served this company in a wide range of positions – including helping start our retained portfolio, guiding our mortgage servicing and Single Family operations, and serving as chief operating officer for the past year. In his role as executive vice president of the Single Family group, he helped to maintain the company's leading edge in that business. Most recently Paul provided important leadership during what has been a particularly challenging time for Freddie Mac. He leaves his position as chief operating officer at a time when Freddie Mac's business is strong. I am pleased he has agreed to remain with the company as a senior adviser so that we may continue to benefit from his insights and experience."
Peterson said, "After 15 years and many successes, it is time for me to begin preparing to move on to other activities and interests that I have long wanted to pursue. I especially want to thank all of the employees at Freddie Mac who have helped us achieve so much. Over the past 15 years we have helped more than 33 million American families finance their homes. We've lowered mortgage rates, provided stability for the housing markets, eliminated regional disparities, created numerous types of new mortgage products and helped innovate new technologies to speed and simplify the mortgage process for our customers and for homebuyers. This is a very special company and I'm honored to have served here. I look forward to watching and cheering for Freddie Mac's future successes."
The hiring of McQuade represents the latest in a series of senior management changes led by Syron since he joined Freddie Mac in January. The company has added a new executive vice president, investments, a new general counsel, a new chief of staff and a new general auditor, in addition to the hiring of McQuade.
A native of New York City, McQuade joined Fleet Financial Group in 1992. There he rapidly developed a reputation as a leader and a problem solver who helped guide one of the nation's largest and most progressive financial companies through a period of sustained growth. Before that he had been the executive vice president and controller at Manufacturers Hanover Corp., a predecessor of J.P. Morgan Chase. McQuade began his career at KPMG Peat Marwick in New York and is a certified public accountant. He is a graduate of St. Bonaventure University with a degree in Accounting.
Freddie Mac has entered into an employment agreement with McQuade, which provides for his employment as president and chief operating officer of Freddie Mac for an initial term of three years, subject to automatic extension for successive one-year periods unless either party gives notice that such extension shall not occur. Under this agreement, the Board of Directors will also nominate McQuade for election as a member of the Board. The Office of Federal Housing Enterprise Oversight has reviewed the terms of this agreement and has approved the termination benefits it provides.
Source: Freddie Mac