Community CU Dissidents Would Bar InsiderEnrichment
PLANO, Texas - (06/21/05) -- Community CU members opposing thegiant credit union's conversion to mutual savings bank will proposea motion during Tuesday night's special meeting to preventexecutives and directors from profiting from the controversialcharter switch. "Based on the experience of managers and directorsof other former credit unions-turned banks, the directors andmanagers of both Community and OmniAmerican credit unions stand topotentially make millions if their plans to convert to a banksucceed," said Mark Arnold, leader of the self-styled Coalition forCU Members, of the two pending Texas-sized credit unionconversions. "We challenge the management and directors of thesecredit unions to commit in writing that they will not enrichthemselves at the expense of tens of thousands of credit unionmembers whose hard-earned money has helped build these financialinstitutions into what they are today." According to the group'sanalysis of previous credit union conversions, executives andmanagers at the two credit unions stand to earn millions of dollarsin stock grants, options and other benefits after they convert, asplanned, to stock form. Members of $1.4 billion Community CU--thebiggest credit union to seek conversion to a mutual savingsbank--will complete their vote on the charter switch at Tuesday'smeeting. Separately, CUNA said its board of directors last weekresolved to reign in the financial benefits earned by topexecutives and directors of credit unions after they convert tosavings banks.