Beyond the usual happy talk about how the merger will benefit credit union members, the merger notice of Schools Financial Credit Union (Sacramento, CA) includes information about merger-related compensation and distribution of net worth to members.
Schools Financial Credit Union is proposing to merge with Schoolsfirst Federal Credit Union (Santa Ana, CA).
First, the credit union states that a vote for the merger will result in an up to $4 million special dividend distribution from net worth to the credit union's members. The distribution will take place on a one-time (pro-rata) basis, with individual dividends being calculated based on average month-end deposit balances in the six (6) month period from June 1, 2019 to November 30, 2019.
Second, the notice disclosed the merger-related compensation for five employees of Schools Financial. Tim Marriott, President/CEO of Schools Financial CU, could earn up to a maximum $8,011,532 in merger-related compensation. However, the notice states that the the likely amount of compensation could be significantly lower.
Also, all employees of Schools Financial Credit Union, except Mr. Marriott, are being offered retention bonuses to help ensure a smooth transition and successful integration of the merger.
The date of the member's vote is December 12, 2019.
Merger Notice.
The new Reg to disclose this info is probably the only real regulation NCUA has implemented in years. Love this, but the membership won't care either way and it will still get rubber stamped. No need for this merger at that size, the board is likely puppets of the CEO.
ReplyDelete8 mill? He was only there a couple of years. I agree that the membership won't read nor care, but this is outrageous.
ReplyDeleteInstead of the motto "People Helping People", may the motto should be "People Helping Themselves".
ReplyDelete