Recently, a federal regulator for financial cooperatives adopted requirements on the timely disclosure of material events and senior management compensation to the owners and investors of the cooperatives.
The Farm Credit Administration (FCA) in September revised the FCA's regulations governing disclosures of senior officer compensation, supplemental retirement plans, and compensation committee responsibilities. The final rule also contains new requirements to hold nonbinding, advisory votes on senior officer compensation
In addition, the final rule requires the timely and transparent communication to shareholders and investors of significant or material events that occur at Farm Credit System institutions between annual reporting periods.
The rule requires the boards of directors to develop policies to identify events to be communicated. Notice must be made within 90 days of the event’s occurrence. The events may be communicated in either a separate notice to shareholders or as part of the quarterly report to shareholders.
If the FCA has adopted such rules for Farm Credit System associations, which are member-owned financial cooperatives, then why hasn't NCUA adopted the same disclosure requirements for federally-insured credit unions?
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Member-owners of credit unions deserve to know the salaries and compensation of the top executives. Remember, the employees work for the owners and the owners are the members. Why should your employees be able to hide their salaries from the member-owners?
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