The credit union's performance was adversely affected by defaulting taxi medallion loans arising from the disruption of the taxi medallion industry.
Robert Familant, CEO and Treasurer of Progressive Credit Union, had total compensation of $1,931,827 for 2017 with a base compensation of $1,870,722, according to the credit union's Form 990 (click on image to enlarge).
While Familant's compensation was scaled back from almost $2.3 million in 2016, this 2017 pay package seems to deny the reality of depth and scope of the problems facing the credit union.
The credit union had $470.6 million in assets at the end of 2017.
Progressive Credit Union was taken over by Pentagon Federal Credit Union (McLean, VA) via an emergency merger in early 2019.
Let's put some numbers to this to demonstrate just how disgusting and obscene this compensation arrangement is. The CEO base compensation breaks down to $900 per hour, or $15 per minute. So, in one minute, the CEO of this small credit union, made the proposed national minimum wage that a staff employee must work 60 minutes to earn. Credit unions like this are not democratically controlled cooperatives run for the benefit of their members. Credit unions like this are run by the management team, with the board either kept in the dark about what is going on, or bribing them with benefits to get their vote of approval. The base compensation of the CLO and COO is also excessive for a credit union of this size.
ReplyDeleteClearly you do not have a clue about what happened with Progressive. At NO TIME was Progressive conserved. They found a merger partner and merged together. It was not forced nor was NCUA the one that found the partner. You are incorrect on what Robert took as a salary. He was a good honest man that had plenty of his own money that he would sacrifice his salary for the good of the credit union. Time and time again you get it wrong. But not surprising seeing you were with American Banker. You write this articles without thinking of the repercussions or the misinformation that you are providing to people that may actual trust your reporting (which is crazy because in almost EVERY taxi medallion article you get it wrong. Robert was a very good business man that was not underwriting crazy loans, he managed the risk of the loans and he never over lent to someone who could not afford it. As someone who knows exactly how they underwrite, they were not predatory in any manner. In addition, it was not the credit union's fault their was a bubble, that lies in the hands of NYC government allowing Uber and Lyft. I wish you would do some actual good reporting instead of this crap you put out. SHAME on you.
ReplyDeleteFor a relatively small financial institution, the base compensation package Robert received demonstrates moral corruption. Absolute corruption on behalf of the board of directors, who approved it, and an equal amount on behalf of the CEO who received it. Credit unions are supposed to be financial cooperatives who operate for the benefit of their members, not at the expense of their members. A CEO of a not-for profit, and especially one this small, who takes base compensation in excess of 60 times the lowest paid employee is so shameful that it borders on criminal.
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