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A
Decree
To
Establish the Federal Reserve Bank’s Compensation Structure
Decree
To
Establish the Federal Reserve Bank’s Compensation Structure
The Federal Reserve Bank, under the power given by the Federal Reserve Act, enacts the following provisions:
1 – Short Title and Enactment
This Decree may be cited as the "FRB Compensation Decree".
This Decree shall be enacted immediately upon signage.
This Decree has been authored by SmokedChief and co-sponsored by Inceee.
This Decree is enacted pursuant to the Federal Reserve Act (“FRA”) and in alignment with all applicable FRB internal policies in effect at the time of enactment. All prior policies inconsistent with this Decree are hereby nullified.
2 – Purpose
To establish a fair and transparent compensation structure for all levels of the Federal Reserve Bank, ensuring competitive base pay and performance-based incentives that reward efficiency, economic contribution, and institutional stability.3 – Definitions
For the purposes of this Decree:
- FRB Board Member – An appointed member of the Federal Reserve Bank’s Board of Governors.
- Division Head – A senior officer responsible for leading an FRB operational division.
- Division Staff – Any appointed or contracted personnel within an FRB division who are not Division Heads or Board Members.
- Base Salary – The fixed monthly R$ amount paid to a role before performance bonuses.
- Performance Bonus – An additional percentage of the base salary awarded based on defined performance metrics.
4 – Base Salary Structure
The monthly base salaries shall be:
Role | Base Salary (R$) |
| FRB Governor | R$ 20,000 |
| FRB Lieutenant Governor | R$ 20,000 |
| FRB Board Member | R$ 13,000 |
| Division Head | R$ 10,000 |
| Division Staff | R$ 7,000 |
5 – Performance Bonus Structure
Role | Max Bonus (%) | Bonus Criteria Overview |
| FRB Governor | 0% | N/A |
| FRB Lieutenant Governor | 0% | N/A |
| FRB Board Member | 25% | Economic policy execution, stability oversight, high-value market interventions, penalty enforcement, public reporting. |
| Division Head | 20% | Division output, budget adherence, operational efficiency, timely reporting. |
| Division Staff | 20% | Task completion rate, accuracy of work, responsiveness, contribution to division KPIs |
Performance Bonus Criteria Table (FRB Board):
| Criteria | Weight (%) | Description | Scoring Method |
| Policy Participation | 10% | Involvement in policy drafting, review, and voting via official written/forum channels. | Full 10% for consistent engagement and documented contributions; reduced for inactivity. |
| Policy Contribution | 5% | Submission or co-sponsorship of new motions, decrees, or acts relevant to FRB operations. | Full 5% for monthly contribution target; reduced if no submissions. |
| Task Contribution | 5% | Completion of assigned operational or oversight tasks within deadlines. | Full 5% if all assigned tasks completed on time; reduced for delays. |
| Public Reporting & Transparency | 5% | Submission of timely and accurate public/internal reports on FRB activities. | Full 5% if all required reports are submitted; reduced for missing or late reports. |
Divisional Performance Bonus Criteria Table:
Category | Weight (%) | Description |
| Economic Contribution | 30 | Impact of work on market stability, liquidity management and inflation control. |
| Task & Project Delivery | 30 | Timely completion and quality of assigned work/projects |
| Compliance & Accuracy | 20 | Adherence to FRA, decree provisions, and accurate documentation |
| Innovation & Initiative | 20 | Process improvements, efficiency gains, and valuable proposals implemented. |
6 – Payment & Calculation Rules
a) Performance evaluations shall be conducted monthly.
b) Bonuses shall be paid within 5 days after the close of each evaluation period.
c) No bonus may exceed the role’s stated maximum percentage.
d) In the event of partial service during a quarter, bonuses shall be pro-rated.
7 – Oversight & Approval
a) Bonus scoring shall be conducted by the Governor with input from Lieutenant Governor and respective Division Heads.
b) Board Member bonuses shall be approved by majority vote of the Board (excluding the member being evaluated).
c) Division Head and Division Staff bonuses shall be approved by the Governor or their delegated Lieutenant Governor.
d) A quarterly report of total compensation (base + bonuses) shall be published publicly.
8 – Enforcement
Any misrepresentation or inflation of performance data to secure bonuses shall result in:
- Immediate forfeiture of the bonus; and
- Potential removal from position subject to FRA provisions.
9 – Purpose
RationaleThe performance bonus levels (25% for Board Members, 20% for Division Heads, and 20% for Division Staff) are designed to:
- Reward high-impact decision-making – Board Members directly influence macroeconomic stability and monetary policy.
- Encourage operational excellence – Division Heads oversee multi-role teams, manage resources, and ensure compliance.
- Motivate efficiency at all levels – Division Staff are key to execution, and their bonuses encourage accuracy, responsiveness, and initiative.
10 – Transition
This Decree shall take effect immediately upon signage.
The first performance evaluation period shall begin on the first day of the month following enactment.
Appendix - Worked Example of Bonus Calculation
Example – Division Staff
- Base Salary: R$ 7,000
- Max Bonus %: 20%
- Performance Score: 85/100
Bonus Calculation:
- Base Salary × Max Bonus % = R$ 7,000 × 20% = R$ 1,400
- Bonus × Performance Score % = R$ 1,400 × 0.85 = R$ 1,190
Total Monthly Pay = Base Salary + Bonus = R$ 7,000 + R$ 1,190 = R$ 8,190
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