FCA Info Memo - Annual Adjustment of the Annual Report Disclosure Threshold for FY 2004 CEO Compensation

Informational Memorandum
Subject:	Annual Adjustment of the Annual Report Disclosure Threshold for FY 2004 CEO Compensation
Date of Memorandum:	02/03/2005
Expiration Date:
Office:	OPA
Signed By:	Harshbarger, Ed
FCA Contact Person:	Dunn, William
Contact Phone:	703-883-4489
List of Attachments:

INFORMATIONAL MEMORANDUM

February 3, 2005

To: Chairman, Board of Directors

Chief Executive Officer

All Farm Credit Banks and Associations

From: C. Edward Harshbarger, Acting Director

Office of Policy and Analysis

Subject: Annual Adjustment of the Annual Report Disclosure Threshold for Fiscal Year 2004 Chief Executive Officer (CEO) Compensation

Farm Credit Administration (FCA) regulation § 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 the change in the Consumer Price Index (CPI). FCA calculates the threshold for each year by determining the increase since 1994, the year the regulatory $150,000 limit was effective.

Using this approach, the 2004 threshold is determined by the increase in the average CPI since 1994:

2004 threshold = $150,000 x (2004 Annual Average CPI/ 1994 Annual Average CPI)

2004 Annual Average CPI

(Based on the annual average Consumer Price Index for all Urban Consumers (CPI-U), U.S. City Average, All Items, 1982-84 = 100. Unadjusted series CUUR0000SA0, U.S. Bureau of Labor Statistics.

) = 188.9

1994 Annual Average CPI = 148.2

2004 Threshold = $150,000 x (188.9/148.2)

The threshold for disclosure of fiscal year 2004 CEO compensation in annual reports is $191,194

(Regulatory CEO compensation disclosure threshold of $150,000 x 1.274629, rounded to the nearest whole dollar.)

If you have any questions regarding the annual adjustment process, please call William Dunn, Risk Analysis Division, (703) 883-4489, TTY (703) 883-4434, or by e-mail to dunnw@fca.gov.