Special Annual Report Issue - AgGeorgia Farm Credit

AgGeorgia Farm Credit, ACASenior OfficersThe following represents certain information regarding the seniorofficers of the Association and their business experience for the pastfive years:Senior OfficerPositionWilliam H. Newberry, Jr. President/Chief Executive Officer sinceMay 2001.Jack C. Drew, Jr.EVP/Chief Operating Officer since June2005 and had previously served as DivisionPresident.Ernest L. GheeEVP/Commercial Lending President sinceJune 2005 and had previously served asCommercial Lending Manager.Thomas E. Kight, Jr. EVP/Director of Marketing since February1997.John P. Lowry III EVP/Information Systems Manager sinceJanuary 2000.Christopher H. Scott EVP/Treasurer/Chief Financial Officersince January 1998.Michael A. Sheppard EVP/Chief Appraiser since April 2000.Patricia G. Thomas EVP/Director of Risk Management sinceAugust 2005 and had previously served asChief Reviewer.Alton ThorntonEVP/Retail Lending President since June2005 and had previously served as DivisionPresident.The total amount of compensation earned by the Chief ExecutiveOfficer alone, and the most highly compensated senior officers as agroup during the years ended December 31, 2006, 2005 and 2004, isas follows:AggregateAnnualNumber ofDeferred/-Senior Officers Year Salary Bonus Perquisites Other TotalWilliam H. Newberry, Jr. 2006* $235,009 $ 51,700 – – $ 286,709William H. Newberry, Jr. 2005 $219,539 $ 37,320 – – $ 256,859William H. Newberry, Jr. 2004 $210,137 $ 31,520 – – $ 241,6578 2006* $861,850 $157,335 – – $1,019,1855 2005 $725,209 $120,705 – – $ 845,9145 2004 $710,356 $101,448 – – $ 811,804* Note: Beginning with year-end 2006, CEO compensation must bedisclosed as a separate line item and is not included in theaggregate amount. The CEO salary is included in the aggregateamount for 2004 and 2005.Regulatory reporting changes have affected the content of thecompensation reported for 2006 and those changes may not bereflected in the 2004 and 2005 amounts.In addition to base salary, all employees except the CEO have theopportunity to earn additional compensation under an incentive plan.The Association incentive plan is designed to motivate employees toexceed certain goals during the fiscal year. The goals are primarily inthe areas of profitability, credit quality and credit administration. TheCEO bonus amount, if any, is established at the discretion of the Boardof Directors. Total incentive compensation earned by employees in2006 was $1,075,969, or 3.35 percent of final net income, of which$765,951 was paid during 2006, and the remainder paid in January2007.Disclosure of information on the total compensation paid during2006 to any senior officer, or to any other individual included inthe total, is available to shareholders upon request.DirectorsDirectors and senior officers are reimbursed on an actual cost basisfor all expenses incurred in the performance of official duties. Suchexpenses may include transportation, lodging, meals, tips, tolls,parking of cars, registration fees, and other expenses associated withtravel on official business.A copy of the policy is available to shareholders of the Associationupon request.The aggregate amount of reimbursement for travel, subsistence andother related expenses for all directors as a group was $230,742 for2006, $209,548 for 2005, and $135,455 for 2004.Subject to approval by the board, the Association may allow directorshonoraria of $300 for attendance at meetings, committee meetings, orspecial assignments, $100 for participation in conference calls plus aretainer fee of $500 per quarter. Total compensation paid to directorsas a group was $274,100 for 2006, $287,900 for 2005, and $223,900for 2004.The following represents certain information regarding the directorsof the Association:Edward M. Beckham, II, Chairman, is a general row crop farmer andinvolved in real estate development. His term began January 1, 2005and ends December 31, 2007. He also serves on the following boardsthat involve banking: Security Bank of Houston County and SecurityBank Bancshares (Vice Chairman). During 2006, he served 9 days atAssociation board meetings and 31 days in other official activities andwas paid $13,600 including retainer. His principal occupation andemployment for the past 5 years has been as a general row crop farmerand oil jobber.Franklin B. Wright, Vice Chairman, is a dairy and poultry farmer.His term of office began January 1, 2005 and ends December 31,2007. He also serves on the following boards and committees,which involve insurance, government programs, farm supply andmarketing, and trade associations: Gilmer County Farm Bureau,Georgia Milk Producers, Southeast United Dairy IndustryAssociation and American Dairy Association of Georgia(President). During 2006, he served 9 days at Association boardmeetings and 34 days in other official activities and was paid$14,500 including retainer. His principal occupation andemployment for the past 5 years has been as a dairy and poultryfarmer.Gerald D. Andrews, Outside Director, is a retired County ExtensionDirector. The Board of Directors appointed Mr. Andrews to a threeyear term beginning January 1, 2005 and ending December 31, 2007.He also serves on the following boards that involve insurance sales,farm commodities and agricultural promotion through development offairs: Washington County Farm Bureau (President) and GeorgiaAssociation of Agricultural Fairs. During 2006, he served 9 days atAssociation board meetings and 25 days in other official activities andwas paid $12,200 including retainer. He has been retired from hisprincipal occupation and employment for the past 5 years.John W. Bagwell, Jr. is a dairy farmer. His term began January 1,2005 and ends December 31, 2007. He also serves on the followingboards that involve trade association, promotion and insurance:Southeast United Dairy Industry Association (Secretary); GeorgiaACC for Milk, American Dairy Association of Georgia and the FloydCounty Farm Bureau. During 2006, he served 9 days at Associationboard meetings and 31 days in other official activities and was paid$14,000 including retainer. His principal occupation and employmentfor the past 5 years has been as a dairy farmer.AgGeorgia.47.Winter 2007162006 Annual Report