FCA Info Memo - Annual Adjustment of Maximum Director Compensation for 2001

Informational Memorandum
Subject:	Annual Adjustment of Maximum Director Compensation for 2001
Date of Memorandum:	02/21/2001
Expiration Date:
Office:	OPA
Signed By:	Dunn, Michael
FCA Contact Person:	Dunn, William
Contact Phone:	703-883-4489
List of Attachments:

INFORMATIONAL MEMORANDUM

February 1, 2001

To: Chairman, Board of Directors

Chief Executive Officer

All Farm Credit Banks

From: Michael V. Dunn, Director

Office of Policy and Analysis

Subject: Annual Adjustment of Maximum Director Compensation for 2001

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 and CoBank.

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 2000 compared with 1999 was:

1. Most recent full-year CPI = annual average 2000 index of consumer prices

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.

= 172.2

2. Prior year CPI = annual average 1999 index of consumer prices = 166.6

3. Annual percentage change = ((172.2 – 166.6)/166.6)*100 = 3.3613 percent

The maximum compensation payable to FCS Bank directors in 2001 is $24,666

2000 director compensation maximum of $23,864 * 3.3613 percent, rounded = $802 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