Miami High School students fight to withhold exit pay for Fannie, Freddie CEOs

September 16, 2008 10:54 pm

— By Susan Redden
sredden@joplinglobe.com
MIAMI, Okla. — Some students at Miami High School are doing more than warily watching a Wall Street meltdown.
Those in the Advanced Placement government class taught by Richard Cannon are circulating petitions calling for the elimination of all severance pay for departing chief officers of Fannie Mae and Freddie Mac, the mortgage giants taken over by federal regulators last week.
Similar demands have come from others in the public as well as politicians, and federal regulators have said they won’t allow severance payments to the executives, even though they are called for in their contracts.
The students are keeping up a drive they started last week, Cannon said, because they want to make sure exit packages for the two “are eliminated, and not just reduced.”
The students have gathered more than 300 signatures so far from other students and Miami residents. They plan to continue until the end of the month and then forward the documents to U.S. Rep. Dan Boren, D.-Okla., their congressman. They have no specific signature goal, “just enough to make an impact,” Cannon said.
He said he urges his AP government class, which is comprised primarily of seniors, to undertake a project each year and to “try to make a difference.”
“We shouldn’t have to pay for their mistakes,” said Jonathan Brice, one of the students. “They screwed up; they should have to take responsibility for their mistakes like the rest of us.”
Kaylee Douthit said the current financial turmoil scares her and her classmates, “because we don’t know what it’s going to mean for our future.”
“They shouldn’t give any money to them,” added Richard Guest. “Money should be going to colleges and universities, not to someone who messed up on their jobs.”
The students also said they don’t want to see further bailouts of companies imperiled due to bad investments or bad decisions by executives.
Maycee Goza said she has gathered a number of signatures from Miami residents. Though adults she has contacted are willing to sign the documents, Goza said her efforts also have prompted some amusement from some of them.
“They signed, but some of them laughed and asked me if I thought we could make any difference,” she said.
“They stereotype us. They think we’re lazy and don’t care,” said Robbie Robinson. “But we’ll fight for things we believe in.”


Exit packages
Without intervention, departing executives of Fannie Mae and Freddie Mac are due to receive “exit packages” totaling a combined $23 million.
Source: Wall Street Journal, Sept. 15.

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