Friday, August 9, 2019

Ohio Becomes the Latest State to Allow CUs to Compensate Directors

Legislation (House Bill 489) permits Ohio credit unions to compensate their directors.

The bill was signed into law in March 2019.

The legislation states "A credit union may provide any of the following to its directors and supervisory audit committee members: (1) Reasonable compensation for their service as directors or supervisory audit committee members."

Robert Rutkowski, Deputy Superintendent of the Ohio Division of Financial Institutions, wrote in the Credit Union Newsletter setting the Division's expectations for credit unions deciding to pay their directors.

Credit unions should take asset size and financial conditions into consideration when setting director pay.

Credit unions should also set new standards for director competence and performance as part of the compensation arrangement.

Read the newsletter.

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.