Annual Report 2018 - Page 40

Name and Position Business experience and other business affiliations Steve Harrington Chief Financial Officer and Executive Vice President, Finance Business experience: Chief Financial Officer from 2001 to present Other business affiliations: Advisory Committee: FCS Financial Rural Community and Agriculture Foundation, Treasurer Jeff Houts Executive Vice President, Operations Business experience: Executive Vice President, Operations from 2010 to present Other business affiliations: Executive committee member of Missouri Farmers Care Director of Missouri Farm Bureau Foundation for Agriculture Manager of Houts Bayview Farms, LLC Dennis Hunsberger Executive Vice President, Chief Information Officer Business experience: Executive Vice President, Chief Information Officer from March 2016 to present Senior Vice President, AgVantis, Inc. from 2003 to February 2016 Steve Iversen Executive Vice President, Risk Management Business experience: Executive Vice President, Risk Management from 2010 to present Senior Officer Compensation Compensation Risk Management: We believe the design and governance of our CEO, senior officer, and highly compensated individuals compensation program is consistent with the highest standards of risk management and provides total compensation that promotes our mission to ensure a safe, sound, and dependable source of credit and related services for agriculture and rural America. Our compensation philosophy aims to provide a competitive total rewards package that will enable us to attract and retain highly qualified officers with the requisite expertise and skills while achieving desired business results aligned with the best interests of our members. The design of our CEO, senior officer, and highly compensated individuals compensation program supports our risk management goals through a set of checks and balances, including (1) a balanced mix of base and variable pay, (2) a balanced use of performance measures that are risk-adjusted where appropriate, and (3) a pay-for-performance process that allocates individual awards based on both results and how those results were achieved. Elements of Compensation: The CEO, senior officer, and highly compensated individuals are compensated with a mix of base salary and annual incentives as well as retirement plans generally available to all employees. Our Board of Directors determines the appropriate balance of goals in the annual incentive plan while keeping in mind their responsibilities to our members. Base salary and the annual incentive plan are intended to be competitive with annual compensation for comparable positions at peer organizations. Base Salary: The CEO, senior officer, and highly compensated individuals base salaries reflect the officer’s experience and level of responsibility. Base salaries are subject to review and approval by the Governance and Compensation Committee of our Board of Directors and are subject to adjustment based on changes in responsibilities or competitive market conditions. Annual Incentive Plan: The CEO, senior officer, and highly compensated individuals incentives are paid annually based on performance criteria established by our Board of Directors. The criteria related to the overall association performance include return on assets, loan volume, and credit quality. Additionally, performance criteria related to personal performance include attainment of personal objectives and performance ratings serve as qualifiers to be eligible to participate annually. We calculate the incentives after the end of the plan year (the plan year is the calendar year). We pay out the incentives within 90 days of year end. Retirement Plans: We have various post-employment benefit plans which are generally available to all association employees, including the CEO and senior officers, based on dates of service to the association and are not otherwise differentiated by position, unless specifically stated. Information regarding the post-employment benefit plans is included in Notes 2 and 9 to the accompanying Consolidated Financial Statements. Other Components of Compensation: Additionally, compensation associated with any company-paid vehicles, group term life insurance premiums, disability insurance premiums, or other taxable reimbursements may be made available to the CEO and senior officers based on job criteria or similar plans available to all employees. Compensation to the CEO, Senior Officers, and Highly Compensated Individuals (in thousands) Name Year Salary Bonus David D. Janish, CEO David D. Janish, CEO* David D. Janish, CEO* 2018 2017 2016 $401 386 367 $168 154 176 Deferred/ Perquisites Other Total $5 4 3 $51 50 48 $625 594 594 $10 9 106 $19 975 1,090 $1,325 2,233 2,562 Aggregate Number of Senior Officers and Highly Compensated Individuals, excluding CEO Five Five Seven** 2018 2017 2016 $972 947 1,051 $324 302 315 *Certain reclassifications of compensation amounts have been made to conform to current year presentation. Previously, elective deferrals of salary were classified as Deferred/Perquisites. These amounts are now classified as salary. ** Includes compensation for an additional senior officer that was hired in March 2016, and a senior officer who retired in September 2016 as well as the individual hired into this position in August 2016. The amount in the “Other” category in the preceding table primarily includes:  Employer match on defined contribution plans available to all employees. 37