SURREY, British Columbia Members of Coast Capital CU, Canada's second-largest credit union, last week voted overwhelmingly in favor of reviewing their board members’ pay, which is costing them $750,000 a year.
More than three-quarters of Coast Capital’s 23,000 voting members wanted to review the compensation its 10 directors receive, after a grassroots campaign criticized its board for being paid $750,517 more than double what competitor Vancity CU paid its board during the 2011-2012 fiscal year.
While a member panel meets to review director compensation, the board has agreed to cut the chairman’s retainer from $76,500 to $65,000, and retainers for all committee chairmen from $10,610 to $5,000. Last year the chairman received $157,000 after $1,000-per-meeting fees were added. The member revolt over board pay comes as an increasing number of U.S. credit unions are opting to pay their volunteer directors as a way to recruit and retain them. Two states, Tennessee and Washington, passed laws allowing credit unions to pay their directors in the last two months, making a total of 14 states allowing director pay.
Last week’s vote follows a grassroots campaign led by one member, who argued director’s pay levels were far higher than at other credit unions in Canada.
As part of the Coast Capital member vote, the $14.6-billion credit union has frozen a recommended increase in the base retainer of directors from $25,500 to $29,500. Some directors get more than $70,000 after meeting fees and committee chair fees are added.
