|Subject:||Maximum Bank Director Compensation for 2006|
|Date of Memorandum:||02/15/2006|
|Expiration Date:|| |
|Office:||Office of Regulatory Policy|
|Signed By:||Jacob, Andrew|
|FCA Contact Person:||Wynn, Wade|
|List of Attachments:|
INFORMATIONAL MEMORANDUM Farm Credit Administration
1501 Farm Credit Drive
McLean, Virginia 22102-5090
February 15, 2006
To: Chairman, Board of Directors
Chief Executive Officer
All Farm Credit Banks
From: Andrew Jacob, Director
Office of Regulatory Policy
Subject: Maximum Bank Director Compensation for 2006
Section 4.21 of the Farm Credit Act of 1971, as amended, and FCA regulation § 611.400 require an annual adjustment in the maximum annual compensation payable to Farm Credit bank1 directors to reflect the change in the Consumer Price Index (CPI). FCA increased the maximum director compensation for 2006 to $45,740 for safety and soundness reasons.2 With the release of annual inflation data for 2005, the director compensation maximum for 2006 should be revised accordingly.
The 2006 maximum annual director compensation is determined by the increase in the average CPI since 2004:
Revised 2006 maximum =
$45,740 x (2005 Annual Average CPI/ 2004 Annual Average CPI)
2005 Annual Average CPI3 = 195.3
2004 Annual Average CPI = 188.9
2006 Maximum Compensation = $45,740 x (195.3/188.9)
The maximum compensation payable to FCS Bank directors in 2006 is $47,290.4
If you have any questions or special circumstances regarding the annual adjustment process, please call Wade Wynn, Office of Regulatory Policy, (703) 883-4262, TTY (703) 883-4434, or by email to firstname.lastname@example.org.
Copy to: Each FCS institution
1The four Farm Credit Banks and CoBank.
2Bookletter BL-051, December 15, 2005.
3Based 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.
4BL-051 director compensation maximum of $45,740 x 1.033880, rounded to the nearest whole dollar.