Franklin D. Raines Wins Pay Dispute

Franklin D. Raines, former chief executive of Fannie Mae will receive $2.6 million under a deal that resolves a pay dispute.

Raines, who left the housing finance company two years ago over allegations that it had manipulated accounting, has won an arbitration ruling that entitled him to receive about $2.6 million of his deferred compensation in a lump sum after his retirement instead of in annual increments spread over many years.

Fannie Mae, a government-sponsored company finances one of every five home loans in the United States.

Raines earned more than $90 million from 1998 to 2003, including $52 million in bonuses tied to the company’s hitting earnings targets.