DOW JONES NEWSWIRES

New Freddie Mac (FRE) Chief Financial Officer Ross Kari got a $2 million sign-on award to compensate him for potential incentive pay he forfeited in leaving Fifth Third Bancorp (FITB).

The disclosure, made in a filing with the Securities and Exchange Commission, comes as the mortgage financier tries to stop continued red ink and changes in management as the company begins its second year under federal conservatorship.

Kari's base salary at Freddie is at least $675,000 and he will get the opportunity to earn up to $3.5 million annually.

Kari was financial chief at Fifth Third, an Ohio-based regional bank which, like many other lenders, has been hurt by surging loan losses. It entered into once-hot areas like Florida during the housing boom.

-By Kevin Kingsbury, Dow Jones Newswires; 212-416-2354; kevin.kingsbury@dowjones.com