Thursday, October 3, 2013

Reasonable Compensation

Earlier this year, Washington state enacted legislation that allows a state chartered credit union to pay its directors and supervisory committee members reasonable compensation for their service as directors and supervisory committee members.

The Washington Division of Credit Unions is now in the process of trying to define what constitutes reasonable compensation.

A first draft of a rulemaking document defines what reasonable compensation is not.

"Compensation is not considered reasonable if it is disproportionate to the services provided by the director or supervisory committee member, unreasonable considering the financial condition of the credit union, or is not comparable to compensation paid to organizations of a comparable size, geographic location, and operational complexity."

The Washington Division of Credit Unions further notes that reasonable compensation should not lead to a material financial loss to the credit union.
Posted by at
Labels: ,

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)
 

The content is provided for educational purposes only, with the understanding that neither the authors, contributors, nor the publishers of this site are engaged in rendering legal, accounting or other expert or professional services. If legal or other expert assistance is required, the services of a competent professional should be sought.

Comments appearing in response to articles appearing on this site do not necessarily reflect the views of the ABA. ABA makes no representations regarding the truth or accuracy of commentary or opinions that may be posted in response to the articles that appear on this website.

The inclusion herein of any link to a website, either in the text of an article or in a comment, does not denote any approval, sponsorship, or endorsement by the ABA, and ABA is not responsible for the content or opinions expressed on those linked websites or related commentary. This content is not licensed to third parties sites and is not affiliated with any third party site. Any reference to the author or this content on any third party site on the Internet is not authorized by the ABA.

It is the policy of the American Bankers Association to comply fully with all antitrust laws. Certain discussions should be considered off-limits, including those that contain competitively sensitive data such as price and cost information, or statements that could be construed as reflecting an attempt or desire to control or influence a particular market or markets. Future pricing or other prospective competitive information should never be shared.