May 28, 2007


  • Great article Chip. Have a look at this Canadian CU article today titled Top dogs at beleaguered N.B. credit union got big bucks, review shows

    Perhaps this is a sign of things to come with disclosures here in the US. For example, expect the media to use the data in different ways (mostly to point out excesses).

    So, a good thing or a bad thing for members and mgmt? On the whole it is probably a good thing to avoid obvious abuses such as the Canadian example.

    However, good managers must be compensated at fair market rates for the banking industry despite FOM salary norms...otherwise, without good managers, the members'' credit union is less likely to return the most value back to them. Meaning: the members'' money, loans, and convenience services will not be leveraged in their best interests as a cooperative...not to mention the growth required to return maximum value as well.

    In short, a credit unions ability to return maximum value to the membership is most related to the effectiveness of the managers and their teams that run them. This talent does not, should not, and can not come at discount prices. Members and BOD will need to be educated on this should top salaries be disclosed or risk loosing the vital talent needed to member jealousy.
  • As in publicly-traded companies and in 501(c)(3) nonprofit organizations, the total compensation of top CU executives should be publicly disclosed. Secrecy breeds distrust.
    Ron Bensley, Jr.
  • ALL credit unions need to start disclosing management salaries in their annual report to members.
  • The CEO and Senior Management Team salaries should be disclosed, just as they are for publicly-traded corporations. The total compensation that is already disclosed in Fortune 500 companies continues to grow, (even after government bailouts), and it is rare that shareholders can organize to change any individual's pay package, unless they are under performing. It is better that the industry self-regulate than having the government do it, because Uncle Sam may throw in a few extra disclosures just for good measure. And with today's media, this issue could turn into a fox hunt overnight.
    Credit Union Member