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Nationally, the topic of compensating credit union directors has generated a great deal of interest recently. From information obtained in the 2014 Cornerstone Credit Union League Compensation Survey, we have answers to questions such as:

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  • What about Cornerstone credit unions?
  • How many pay their directors to attend board meetings?
  • How much are they paid?
  • Do Cornerstone credit unions cover expenses for attending conferences or educational programs?
  • If so, how much is budgeted for this annually?

 

Pay to Attend Meetings

To begin, only 5% of responding credit unions paid directors to attend board meetings and committee meetings. The likelihood of doing so does not appear to be correlated with asset size (that is, small, medium, and large-size credit unions are about equally likely to provide this type of compensation). However, charter type does appear to make a difference, with 11% of state chartered credit unions providing compensating for meeting attendance, versus 2% of federally chartered institutions.

Overall, the median amount paid per director per meeting was $42. The average was higher among state than federally chartered credit unions ($50 versus $12), and highest by far among the largest credit unions ($300 among institutions with assets over $250 million).

Pay to Attend Conferences or Educational Programs

The practice of covering expenses for directors to attend conferences or educational programs was prevalent, with 86% of all respondents doing so. While the likelihood of providing this form of compensation was similar between state and federal credit unions (88% and 85%, respectively), the likelihood increased as asset size increased (from 73% of credit unions with assets under $5 million to 100% of the over $250 million group).  

How much on average is budgeted annually for each volunteer to attend conferences or educational programs? The median amount is $1,250, with the figure being somewhat larger among state than federal credit unions ($1,750 versus $1,000). The median amount was positively related to asset size, increasing from $1,000 for credit unions with assets under $5 million to $5,000 for those whose assets were more than $250 million.

Other Forms of Compensation

Survey participants also listed additional forms of compensation they provide to their directors. Appearing with the greatest frequency were iPads, AD&D, Internet access, and life insurance. This was followed by other types of compensation, including lunch at board meetings, health insurance, the waiving of credit union fees, subscriptions to CU Magazine, fitness memberships, free checks, and computers.

Again, given the current relevancy of director compensation, we wanted to supply you with information that we’ve gathered on this topic, specifically as it relates to Cornerstone credit unions. We hope you find the information interesting and useful.

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