|Subject:||Annual Adjustment of the 1998 Annual Report Disclosure Threshold for 1997 CEO Compensation|
|Date of Memorandum:||02/06/1998|
|Expiration Date:|| |
|Signed By:||McKenzie, Thomas|
|FCA Contact Person:||Dunn, William|
|List of Attachments:|
February 6, 1998
To: Chairman, Board of Directors
Chief Executive Officer
All Farm Credit Banks and Associations
From: Thomas G. McKenzie, Director
Office of Policy and Analysis
Subject: Annual Adjustment of the 1998 Annual Report Disclosure Threshold for 1997 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.
The percentage change in the CPI for 1997 compared with 1996 was:
Annual percentage change = (most recent full-year CPI - prior year CPI) * 100
prior year CPI
The threshold for disclosure of fiscal year 1997 CEO compensation in annual reports released in 1998 is $162,450. 1996 CEO compensation threshold of $158,806* 2.2945 percent, rounded = $3,644 increase.
If you have any questions regarding the annual adjustment process, please call William Dunn, Risk Analysis Division, (703) 883-4455.
1. Most recent full-year CPI = annual average 1997 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. = 160.5
2. Prior year CPI = annual average 1996 index of consumer prices = 156.9
3. Annual percentage change = ((160.5-156.9)/156.9)*100 = 2.2945 percent