FCA Info Memo - Annual Adjustment of the 2001 Annual Report Disclosure Threshold for 2000 CEO Compensation

Informational Memorandum
Subject:	Annual Adjustment of the 2001 Annual Report Disclosure Threshold for 2000 CEO Compensation
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 and Associations

From: Michael V. Dunn, Director

Office of Policy and Analysis

Subject: Annual Adjustment of the 2001 Annual Report Disclosure Threshold for 2000 CEO Compensation

Farm Credit Administration regulation at § 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 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 threshold for disclosure of fiscal year 2000 CEO compensation in annual reports released in 2001 is $174,292

1999 CEO compensation threshold of $168,624 * 3.3613 percent, rounded = $5,668 increase.

If you have any questions regarding the annual adjustment process, please call William Dunn, Risk Analysis Division, (703) 883-4489.