Herbert M. Allison

Who was Herbert M. Allison?

Herbert Monroe Allison, Jr. was an American businessman who oversaw the Troubled Asset Relief Program as Assistant Secretary of the Treasury for Financial Stability from 2009 to 2010. His previous positions included President and CEO of Fannie Mae, a post to which he was appointed in September 2008, after Fannie was placed into conservatorship. Prior to that, Mr. Allison was Chairman, President and Chief Executive Officer of TIAA-CREF from 2002 until his retirement in 2008.

Allison began his career at Merrill Lynch as an associate in investment banking and served variously as Treasurer, Director of Human Resources, Chief Financial Officer, Executive Vice President, President, Chief Operating Officer and as a member of the Board during his 28 years there. While at Merrill Lynch, he worked in New York, London, Paris, and Tehran.

After the stock market crash of 1987, Allison revised the bonus structure at Merrill Lynch, adding compensation based on company performance to a plan that was previously based on individual performance alone. "Herbies," as the options became known, were controversial at first but ended up being extremely successful both for the company and the individuals involved.