NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORP /DC/

CFC’s success in providing industry expertise and responsive service to meet the needs of our members across the United States is dependent on the quality of service provided by our employees and their relationships with our members. We therefore strive to align our human capital management strategy with our member-focused mission and core values of service, integrity and excellence. Our objectives are (i) to attract, develop and retain a highly qualified workforce with backgrounds and experience in multiple areas whose skills and strengths are consistent with CFC’s mission, and (ii) to create an engaged and collaborative work culture, which we believe is critical to deliver exceptional service to our members.

Governance of Human Capital

CFC’s executive leadership team and board of directors work together to provide oversight on most human capital matters. The Compensation Committee of the board of directors meets quarterly to review updates to our compensation programs, including our salary structure, incentive plans and executive compensation. Our board is provided with periodic updates on succession planning efforts, current human capital management risks and mitigation efforts in addition to any other matters that affect our ability to attract, develop and maintain the talent needed to execute on our corporate objectives.

Recruiting and Retaining Talent

As a financial services organization, our recruitment goal is to attract and retain a highly skilled workforce in a highly competitive talent market. We strive to provide both external candidates and internal employees with meaningful career opportunities ranging from entry-level to expert-level professional, management and executive positions.

We use a variety of methods to attract talent, including direct sourcing, recruitment job boards, a referral bonus program and targeted industry-related job posting sites. When appropriate, we engage with recruiting firms to ensure that we have surveyed a broad scope of active and passive candidates for certain critical positions. We strive to ensure that CFC’s employment value proposition reflects a mission-driven cooperative so that we can attract individuals who are highly engaged with our vision to be our members’ most trusted financial resource. In fiscal year 2026, we focused on assessing current total rewards offered to employees and identifying areas of opportunity to strengthen our competitiveness and ability to retain talent. We welcomed 33 new hires this fiscal year and employed 320 staff members as of May 31, 2026, all located in the United States. The majority of our workforce is headquartered in Dulles, Virginia.

Because many of our business operations involve significant member-facing interaction with a relatively stable base of long-standing member-borrowers, we place a priority on the retention of high-performing employees who have extensive, in-depth experience serving the needs of our members. Our turnover rate for fiscal year 2026 was 9.7%. Our average employee tenure was eight years with roughly one third of theworkforce having more than 10 years of service with CFC.

Employee Engagement and Development

CFC recognizes the value of a connected and collaborative workplace that fosters strong relationships, encourages knowledge sharing, and creates meaningful opportunities for employee growth and development. With the majority of employees located at our headquarters, team members benefit from regular interaction with colleagues, leaders, and subject matter experts, supporting engagement, mentorship, and professional development across the organization.

In fiscal year 2026, CFC maintained a company-wide Learning and Development program designed to build a highly capable and agile workforce aligned to business priorities. The fourth quadrant of our balanced corporate scorecard focused on process improvement, data analytics, and AI. This effort included the delivery of targeted educational sessions and workshops designed to build enterprise-wide capabilities in these areas, encouraging employees to leverage emerging technologies to improve efficiency and enhance member outcomes. The program also promoted cross-functional collaboration and innovation by engaging employees across functions and levels, helping to surface internal expertise and drive continuous improvement. See “Item 11. Executive Compensation—Compensation Discussion and Analysis—Elements of Compensation—Annual Incentive” for additional information about our corporate scorecard.

Our approach to learning and development emphasizes a talent-based learning strategy that equips employees with job-relevant capabilities and leadership skills while fostering continuous growth. Through a combination of structured training, digital learning platforms, and external development opportunities, including professional certifications and industry programs, employees are supported in strengthening both technical expertise and critical skills such as communication, problem solving, and leadership.

CFC continues to expand and refine its development offerings to support both individual growth and organizational priorities. Employees have access to a wide variety of training resources, including curated learning content, knowledge-sharing forums, and opportunities such as Toastmasters, which reinforce communication and leadership skills. These programs are complemented by ongoing learning communications and development initiatives that help employees stay current with evolving industry trends and business needs, reinforcing a strong culture of learning, adaptability, and performance excellence.

Compensation and Benefits Packages

Attracting, developing, rewarding and retaining high-level talent is a key component of our human capital objectives, so we seek to provide a competitive total rewards package consisting of base pay, an annual incentive opportunity, and benefits packages. CFC’s compensation program includes a base salary range structure to provide flexibility in meeting labor market demands and the ability to differentiate pay based on experience and performance. The salary ranges are structured in zones aligned with median market pay for the positions in each zone. We continuously evaluate and adjust our merit increase budget in order to retain and attract exceptional staff in a highly competitive talent market.

Our annual incentive plan is based on (i) attainment of our targeted corporate scorecard goals as established at the beginning of the fiscal year and (ii) individual performance ratings from our annual review process. Attainment of the annual scorecard goals requires the collective engagement and effort of employees across the company, which we believe incentivizes teamwork and fosters a collaborative working environment. The individual performance component enables the organization to differentiate a portion of the incentive compensation, which demonstrates the value of a high-performance culture on behalf of our members.

The employee benefits components of our total rewards package include the following: vacation and leave programs; health, dental, vision, life and disability insurance coverage; and flexible spending and health savings plans, most of which are funded in whole or in part by CFC. We make investments in the future financial security of our employees by offering retirement plans that consist of a 401(k) plan with a company match component and an employer-funded defined benefit retirement plan in which CFC makes an annual contribution in an amount that approximates 20% of each employee’s base salary, which we believe helps in our efforts to engage employees, retain high-performing employees and reduce turnover. We also offer programs and resources intended to promote work-life balance, assist in navigating life events and improve employee well-being, such as flexible work schedules, remote work options, parental leave, an employee assistance program, legal insurance and identity theft coverage services.

Open-Door Communications

CFC maintains a strong focus on our core value of integrity in pursuit of our mission. To promote open communication, we maintain an open-door policy and provide multiple avenues for employees to voice their concerns and offer suggestions. Employees are encouraged to report any issues to their manager, senior vice president, corporate compliance, Human Resources or our corporate ethics helpline. All new employees receive Code of Conduct & Business Ethics training, and all employees complete an annual Code of Conduct & Business Ethics training to foster a culture of integrity and accountability.