Compensation committees.

CFR · 2024-01-01 · US · Title 12

Each Farm Credit bank and association must establish and maintain a compensation committee by adopting a written charter describing the committee's composition, authorities, and responsibilities in accordance with this section. The compensation committee must report only to the board of directors. All compensation committees are required to maintain records of meetings, including attendance, for at least 3 fiscal years. (a) (b) (1) Institution's projected long-term compensation and retirement benefit obligations are appropriate to the services performed and not excessive; (2) Incentive-based compensation programs and payments are reasonable and proportionate to the services performed and structured so the payout schedule considers the potential for future losses or undue risks to the institution; (3) Senior officer compensation, incentive, and benefit programs support the institution's long-term business strategy and mission, as well as promote safe and sound business practices; and (4) Compensation programs designed for specific groups of employees, other than senior officers, pose no imprudent risks to the institution. (c)

official document · source cfr-2024 · id 12:§ 620.31