Sec. 5104. Compensation disclosure by Farm Credit System institutions
198 words·~1 min read·
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Congress finds that — the reasonable disclosure to stockholders by Farm Credit System institutions regarding the compensation of Farm Credit System institution senior officers is beneficial to stockholders’ understanding of the operation of their institutions; transparency regarding compensation practices reinforces the cooperative nature of Farm Credit System institutions; the unique cooperative structure of the Farm Credit System should be considered when promulgating rules; the participation of stockholders in the election of the boards of directors of Farm Credit System institutions provides stockholders the opportunity to participate in the management of their institutions; as representatives of stockholders, the boards of directors of Farm Credit System institutions importantly establish and oversee the compensation practices of Farm Credit System institutions to ensure the safe and sound operation of those institutions; and any regulation should strengthen and not hinder the ability of Farm Credit System boards of directors to oversee compensation practices.
Not later than 60 days after the date of enactment of this Act, the Farm Credit Administration shall review its rules to reflect Congressional intent that a primary responsibility of the boards of directors of Farm Credit System institutions, as elected representatives of their stockholders, is to oversee compensation practices.