Monday, June 4, 2018

Large CU Executive Pay Was 13 Times Higher Than Average CU Employee Pay

In 2016, chief executive compensation at large state chartered credit unions was on average 13.12 times the average employee salary and benefits in 2016.

The median ratio of chief executive compensation to average employee salary and benefits was 10.22.

To calculate average credit union employee compensation, the analysis divided the Call Report line item Employee Compensation & Benefits by Full Time Equivalent Employees. Full Time Equivalent Employees = The Number of Full Time Employees + (0.5 times the Number of Part Time Employees).

A large state chartered credit union had at least $1 billion in assets.

Premier America Credit Union (Chatsworth, CA) reported the highest ratio of CEO pay to average employee pay at 79.41. The next highest ratio was 66.11 for OnPoint Community Credit Union (Portland, OR). The following chart lists the 10 credit unions with the highest ratio of CEO compensation to average employee salary and benefits.

However, this comparison is not comparable to data being reported by publicly traded companies, which compares CEO pay to median employee pay. It is likely that the ratio for chief executive compensation to average employee pay for large state chartered credit unions is understated, because the analysis uses average employee pay, as median employee pay is not available. The median of employee compensation will be typically lower than the average employee compensation.

1 comment:

  1. What’s the typical differential in banks and other industries?



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