|Next Info Memo||List of Info Memos|
|Subject:||Maximum Bank Director Compensation for 2007|
|Date of Memorandum:||02/15/2007|
|Signed By:||Jacob, Andrew|
|FCA Contact Person:||Wilson, Michael|
|List of Attachments:||1|
McLean, Virginia 2102-5090
February 13, 2007
To: Chairman, Board of Directors
Chief Executive Officer
All Farm Credit Banks
From: Andrew D. Jacob, Director
Office of Regulatory Policy
Subject: Maximum Bank Director Compensation for 2007
Section 4.21 of the Farm Credit Act of 1971, as amended (Act), and Farm Credit Administration (FCA) regulation § 611.400 require an annual adjustment in the maximum annual compensation payable to Farm Credit System (FCS) bank directors to reflect the change in the Consumer Price Index (CPI). With the release of annual CPI data for 2006, the FCS bank director compensation maximum for 2007 will be revised accordingly.
The 2007 maximum is determined by the 2006 maximum plus the increase in the average CPI over the prior year as follows:
2 Based on the annual average Consumer Price Index for all Urban Consumers, U.S. City Average, All Items, 1982-84 = 100. Unadjusted series CUUR0000SA0, U.S. Bureau of Labor Statistics.
3 Rounded to the nearest whole dollar.
Informational Memorandum - Subject Date
1. Annual Adjustment of Maximum Director Compensation for 1997 February 11, 1997
2. Annual Adjustment of Maximum Director Compensation for 1998 February 06, 1998
3. Annual Adjustment of Maximum Director Compensation for 1999 January 29, 1999
4. Annual Adjustment of Maximum Director Compensation for 2000 January 28, 2000
5. Annual Adjustment of Maximum Director Compensation for 2001 February 01, 2001
6. Annual Adjustment of Maximum Director Compensation for 2002 January 29, 2002
7. Maximum Bank Director Compensation for 2005 February 03, 2005
8. Maximum Bank Director Compensation for 2006 February 05, 2006
Attached is a table that provides the maximum bank director compensation level for the years 1997 to 2007. Also, the governance rule that became effective on April 5, 2006, requires that each FCS bank and association disclose in its annual report the compensation of the Chief Executive Officer (CEO), separately, regardless of the amount of the CEO’s compensation. As a result, FCS banks and associations will no longer receive a letter from the FCA on the annual adjustment of the CEO compensation disclosure threshold.
If you have any questions regarding the annual adjustment process, please call Mike Wilson, Office of Regulatory Policy, (703) 883-4124, TTY (703) 883-4434, or contact him by e-mail at email@example.com.
Copy to: Each FCS institution
4 The annual adjustment for maximum director compensation for 2003 and 2004 were made via Bookletters BL-045, dated March 12, 2003, and BL-048, dated March 1, 2004, respectively
(see attached icon for entire Informational Memorandum, which includes the attachment)