FCA Info Memo - Maximum Bank Director Compensation for 2005

Informational Memorandum
Subject:	Maximum Bank Director Compensation for 2005
Date of Memorandum:	02/03/2005
Expiration Date:
Office:	OPA
Signed By:	Harshbarger, Ed
FCA Contact Person:	Dunn, William
Contact Phone:	703-883-4489
List of Attachments:

INFORMATIONAL MEMORANDUM

February 3, 2005

To: Chairman, Board of Directors
Chief Executive Officer
All Farm Credit Banks

From: C. Edward Harshbarger, Acting Director
Office of Policy and Analysis

Subject: Maximum Bank Director Compensation for 2005

Section 4.21 of the Farm Credit Act, as amended, and FCA regulation § 611.400 require an annual adjustment in the maximum annual compensation payable to FCS Bank (The four Farm Credit Banks and CoBank.) directors to reflect the change in the Consumer Price Index (CPI). FCA calculates the maximum compensation by determining the CPI increase since October 1992, the date the statutory $20,000 limit became effective.

The 2005 maximum annual director compensation is determined by the increase in the average CPI since October 1992:

2005 maximum =

$20,000 x (2004 Annual Average CPI/ October 1992 Effective Annual Average CPI)

2004 Annual Average CPI

(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.

) = 188.9

October 1992 Effective Annual Average CPI = 139.6167

2005 Maximum Compensation = $20,000 x (188.9/139.6167)

The maximum compensation payable to FCS Bank directors in 2005 is $27,060. (Statutory director compensation maximum of $20,000 x 1.352990, rounded to the nearest whole dollar.)

If you have any questions or special circumstances regarding the annual adjustment process, please call William Dunn, Risk Analysis Division, (703) 883-4489, TTY (703) 883-4434, or by e-mail to dunnw@fca.gov.

Copy to: Each FCS institution