WASHINGTON - CUNA, which has been fighting NCUA efforts to expand disclosures of executive compensation, told the Internal Revenue Service it opposes an effort to increase disclosure on the annual Form 990 that would expand public access to executive compensation at state chartered credit unions.
In a letter submitted to the IRS, CUNA said that nontaxable expense reimbursements and fringe benefits should not be included as compensation, and also said that the IRS proposal would include too many executives.
Only state-chartered credit unions are required to file the annual disclosures with the IRS.
Over the past year, CUNA has opposed efforts by NCUA to require disclosure of executive compensation, saying they would add to regulatory burden and are unnecessary. For example, CUNA said a proposal by NCUA to require credit unions to disclose executive compensation during mergers would have a “chilling” affect and deter mergers. CUNA also opposed an NCUA proposal that would require disclosure to members of compensation paid to top credit union executives, saying that information should not be detailed and only disclosed in the aggregate.
In last week’s letter to the IRS, CUNA said the proposed disclosures on the Form 990s would result in inflated figures “that reflect certain reimbursements not generally considered to be compensation,” and that the threshold for reporting employee compensation is too low and would include employees with “sufficient authority or control at the workplace.”
In addition, CUNA said the definition of “key employee” is too broad and could result in unintentionally including personal salaries of department heads, middle managers and other employee who do not have the responsibilities, power or influence of “key” personnel.
(c) 2008
