Response to Elevations CU Banker Bashing Ad

Elevations Credit Union in Boulder, Colorado ran an ad bashing banks in the Boulder County Business Report.

The ad had the following headline "What do you call an executive who loses millions and gets a big bonus?"

The ad's answer was "B@NK#R."

However, I came to a different answer. I immediately thought of Larry Sharp, the former CEO of Arrowhead Central Credit Union that is now under NCUA conservatorship, and Michael Maslak, former head of North Island Financial Credit Union.

According to Arrowhead Central's Form 990 report for 2008, Larry Sharp was paid $66,500 in bonuses and incentive compensation in 2008 even as Arrowhead Central reported a loss of $26 million.

North Island's Maslak was paid $70,000 in bonuses and incentive compensation in 2008. The credit union was in the red -- reporting a 2008 loss of almost $50.2 million.

If you look at the NCUA's IG report on the failure of Cal State 9, it points out that the CFO was paid nearly $400,000 in bonuses between 2006 and 2007 from its indirect HELOC program. This HELOC program ultimately caused the failure of Cal State 9.

The credit union industry needs to look carefully at itself in the mirror. Some credit union executives are being paid large bonuses, even as their credit unions struggle financially.

After all, people who live in glass houses should not throw stones.