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.

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