NCUA Eyes Disclosures on Management Compensation in CU Mergers

ALEXANDRIA, Va. – The NCUA Board is expected to propose a rule next week that will require disclosures of management pay during credit union mergers, currently a murky area. The proposal, expected to be issued for public comment would require all credit unions to disclose management buyouts and golden parachutes during mergers to NCUA, and for federally chartered credit unions to make the disclosures to members, who must vote on the merger of their credit union. A regular feature of credit union mergers is the retirement and other pay made to executives of credit unions being merged out of existence. The NCUA Board is also expected to propose another rule that will set definitive standards for member access to all books, records and board meeting minutes for federal credit unions, another grey area that has ended up in the courts in recent years, particularly in cases where a credit union is converting to mutual savings bank. That rule is also expected to be issued for public comment.