COVINA, Calif.-It isn't just growth rates that differ between the largest and smallest credit unions-trends in CEO compensation moved in different directions during 2011, as well.
New research released by Executive Compensation Solutions shows that the average total cash compensation for CEOs at credit unions $100 million in assets and below declined during 2011, while CEO pay at credit unions of $1 billion or more in assets continued to increase.
The data, released as part of Executive Compensation Solutions' "The Survey 2011" found the average CEO Total Cash Compensation in 2011 was $103,138 at credit unions up to $100-million in assets, down from $110,837 in 2010. That decline was matched by a similar decline in base pay, which fell to $99,369 from $106,879.
All other asset size categories registered pay increases in the survey:
• For assets $100M-$200M, total CEO cash compensation averaged $157,607, up from $155,160 in 2010.
• For assets $200M-$500M, total CEO cash compensation was $223,408, up from $214,131 in 2010.
• For assets $500M-$1B, total CEO cash compensation rose to $346,995, up from $314,525 one year earlier.
• For assets of $1 billion or more, total CEO cash compensation grew to $486,117, up from $460,234 in 2010.
The research also found that at credit unions of $2 billion or more pay increases far outpaced inflation, with the average base salary for CEOs $499,801 in 2011-a 4% increase over 2010-and despite the economy, a whopping 16% increase over 2009.
Role of Board Discretion
"This year's reporting showed a continuation of a trend toward more relevant and objective measurements for determining short-term incentives," wrote Executive Compensation Solutions in its analysis of the findings. "Board discretion remains an important criterion in the evaluation process, but has dropped in importance relative to other more objective factors."
ECS reported that for the second year in a row loan growth was the leading performance factor evaluated by credit unions in the measurement of performance goals. Return on Assets (ROA) was used as a performance factor by 56% of those surveyed, while others cited membership growth, satisfaction, expense ratios and loan delinquencies as factors for determining performance.
ECS also looked at compensation for additional members of the executive team. It found the second highest-paid position in credit unions surveyed was most often designated as the executive vice president, with the base salary for that position also varying significantly by asset size.
Executive Compensation Solutions compared the average credit union salaries with those reported by banks in the American Bankers Association survey, and found CU salary averages across all asset size categories trailing those of banks.
