Fannie Mae yesterday released details of the severance package for Franklin Raines and said the former chairman and chief executive would continue to receive a salary until mid-2005 despite being ousted amid an accounting scandal at the mortgage finance provider.

Mr Raines has told Fannie Mae that his retirement from the company is not effective until June 2005, entitling him to some $600,000 in salary in the next six months. He will also receive almost 2m vested stock options, $116,300 per month in pension payments for life, $8.7m in deferred compensation and lifetime medical and dental insurance. The figures were revealed in a filing to the Securities and Exchange Commission.