The National Credit Union Administration's Voluntary Merger proposal would require a merging FCU to disclose to its members all merger-related financial arrangements in whatever form they may take that are paid to its CEO, the next four highest paid employees after the CEO, the board of directors, and the supervisory committee.
In justifying the proposal, the agency cites the need for transparency and disclosure so that members can make an informed decision about a merger.
Both Chairman McWatters and Board member Metsger invoked transparency numerous times during the May 25th Board meeting, when discussing the proposal.
If transparency and disclosure is so important, then why should the National Credit Union Administration (NCUA) stop at requiring only the disclosure of merger-related financial arrangements?
NCUA should require all federal credit unions to reveal the pay of their CEOs and other highly paid employees.
Credit union members have the right to know.
This would ensure that federal credit unions are treated the same as other tax exempt organizations regarding the disclosure of executive compensation, including state chartered credit unions.
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I am a CEO at a FCU. I would support this. Secrecy is always worse than transparency. My opinion, if CEO compensation came to light, in 99% of the cases, it would be a non-story and non-event.
ReplyDeleteYou could do this yourself at your FCU, no?
DeleteYou could do this at your FCU, no? Why not lead the way?
DeleteThat's a fair comment. We have over the years had conversations with the Board about this and never quite figured out the most proper way to do this and how to disclosure any 457F plans which are non-vested. Also there has been debate on what value this would give when I have never been asked the question by any member. If a reg gave a uniform way to do this (like state charters do on the 990), it would be a non-issue for most FCUs, certainly where I serve.
DeleteI agree that pay should be disclosed for all FCUs. State Chartered CUs do this already, so why not?
ReplyDeleteAlso a CEO at a State CU, I would generally agree. The only practical issue is that our SEG's often have formal retirement programs, while the CEO does not. Members do not realize that and focus on salary only.
ReplyDeleteso "Transparency"* is the end the NCUA, and now you, are seeking with savings account customers at credit unions on the simple topics of exec comp, and exec severance tailored to a merger.
ReplyDelete*Webster: Transparency,"readily understood".
Some of these CU CEO $alaries will make a bank president blush!
ReplyDelete