Freddie Mac President Eugene McQuade will leave the firm when his contract expires, rather than serve as chief executive officer, the mortgage giant announced Tuesday.
“As had long been anticipated, the board extended an offer to Gene to become chief executive,” said Shaun O’Malley, the lead director of Freddie Mac’s board, in a prepared statement. “While we are disappointed in his decision to decline that offer and move on, we respect his decision.”
McQuade said in a statement he has decided to return to New England, where his family resides, and pursue guiding a “more traditional financial institution.” McQuade’s contract ends Sept. 1. He has agreed to seek re-election to Freddie Mac’s board of directors in June.
McQuade was expected to take over for current CEO and chairman Richard F. Syron. The board of directors has formed a special committee to determine what the company will do to replace Syron.
Freddie Mac has emerged from troubles that began in 2003 when it announced it had to restate its financial records from 2000-2002 to address discrepancies totaling $5 billion. The firm has reported annual rather than quarterly financial results since the incident. Freddie Mac said Tuesday it will return to quarterly reporting in June.
Ronald Poe, the longest-serving board member, will also retire at the end of his term, the company said in a Tuesday news release. Nicole Restinas has been nominated as a replacement.
