Previous Document IconPrevious Info Memo

Next Document IconNext Info MemoExam Manual Table of Contents IconList of Info Memos

Informational Memorandum
Subject:Annual Adjustment of the 1999 Annual Report Disclosure Threshold for 1998 CEO Compensation
Date of Memorandum:01/29/1999
Expiration Date:
Office:OPA
Signed By:McKenzie, Thomas
FCA Contact Person:Dunn, William
Contact Phone:703-883-4489
List of Attachments:

INFORMATIONAL MEMORANDUM




January 29, 1999



To: Chairman, Board of Directors
Chief Executive Officer
All Farm Credit Banks and Associations

From: Thomas G. McKenzie, Director
Office of Policy and Analysis

Subject: Annual Adjustment of the 1999 Annual Report Disclosure Threshold for 1998 CEO Compensation

Farm Credit Administration regulation at 620.5(i)(2)(i)(A) establishes the threshold for determining when CEO compensation must be disclosed in the annual report. The threshold is adjusted annually to reflect changes in the Consumer Price Index (CPI). The adjustment used is the annual percentage change in the CPI.


The percentage change in the CPI for 1998 compared with 1997 was:

1. Most recent full-year CPI = annual average 1998 index of consumer prices Based on the Consumer Price Index for all Urban Consumers (CPI-U) for the U.S. City Average for All Items, 1982-84 = 100. Unadjusted series CUUR0000SA0, U.S. Bureau of Labor Statistics. = 163.0
2. Prior year CPI = annual average 1997 index of consumer prices = 160.5
3. Annual percentage change = ((163.0-160.5)/160.5)*100 = 1.5576 percent

The threshold for disclosure of fiscal year 1998 CEO compensation in annual reports released in 1999 is $164,980. 1997 CEO compensation threshold of $162,450 * 1.5576 percent, rounded = $2,530 increase.

If you have any questions regarding the annual adjustment process, please call William Dunn, Risk Analysis Division, (703) 883-4489.