Community CU Dissidents Focus On InsiderBenefits
PLANO, Texas - (06/07/05) -- Dissident members of Community CUcalled on NCUA to force the would-be mutual savings bank to divulgemore details on insider remuneration as part of any amendeddisclosures to be issued as part of the controversial conversion tomutual savings bank. In a June 1 letter to NCUA obtained by TheCredit Union Journal, the Texas Coalition for CU Members notes thatprior disclosures mailed by the credit union giant, and sinceinvalidated by NCUA, explain that directors and officers "will havean opportunity to purchase stock in the initial stock offering,"but neglects mention of additional stock benefits usually offeredinsiders after a credit union has converted, such as stock grants,options, and employee stock ownership plans. In its letter, thegroup asserts that NCUA's newly adopted rules on conversionsrequire the converting credit union to include any and all detailsof compensation or other conversion-elated benefits accruing todirectors and senior managers. "Only with such a disclosure canmembers adequately assess the motivating forces behind thedirectors' recommended conversion plan," the group stated. NCUAmaintains Community CU's disclosures/ballots are in violation ofits own rules and must be redone in order for the vote to becertified, but representatives of the $1.4-billion credit uniondisagree and have planning to proceed with the ballot and a June 21special meeting where the votes will be tallied.