|Subject:||Annual Adjustment of Maximum Director Compensation for 1999|
|Date of Memorandum:||01/29/1999|
|Expiration Date:|| |
|Signed By:||McKenzie, Thomas|
|FCA Contact Person:||Dunn, William|
|List of Attachments:|
January 29, 1999
To: Chairman, Board of Directors
Chief Executive Officer
All Farm Credit Banks
From: Thomas G. McKenzie, Director
Office of Policy and Analysis
Subject: Annual Adjustment of Maximum Director Compensation for 1999
Section 4.21 of the Farm Credit Act, as amended, and FCA regulation at § 611.400 require annual adjustments in Farm Credit System (FCS) Bank The six FCBs, CoBank, and the St. Paul Bank for Cooperatives. directors maximum annual compensation to reflect changes in the Consumer Price Index (CPI). The adjustment used is the annual percentage change in the CPI.
Annual percentage change = (most recent full-year CPI - prior year CPI) * 100
prior year 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 maximum compensation payable to FCS Bank directors in 1999 is $23,348. 1998 director compensation maximum of $22,990 * 1.5576 percent, rounded = $358 increase.
If you have any questions regarding the annual adjustment process, please call William Dunn, Risk Analysis Division, (703) 883-4489.
Copy to: Each FCS institution