CU CEO Compensation Falls 3.5%, Study Says
MADISON, Wis.-Compensation paid to credit union CEOs declined 3.5% in 2009, largely as the result of reductions in variable pay, according to a new report from CUNA. CUNA's 2010-2011 CEO Total Compensation Survey Report, which focuses only on CUs of more than $100 million, found that overall 59% of those CEOs were paid a bonus and/or incentive in 2009, down from 73% in 2008. For those receiving the onus the amount awarded in 2009 was $16,345, down 37% from $26,000 in 2008, CUNA said.
Tales From The CU Crypt
WEST PALM BEACH, Fla.-It's been a ghoulish year for many credit unions, with frightening assessments and investment returns paying little more than "boo." CUs have also had to deal with member "horror stories" of their own, and once again Credit Union Journal is looking to collect them for its annual Halloween tribute to scary member stories. As always, it's anonymous. Have a terrifying tale or two to share? Members with strange loan requests? Zombie-like finances? Email your stories to Managing Editor Lisa Freeman at firstname.lastname@example.org, or use the Letters to the Editor tab at cujournal.com. Stories will appear in the Oct. 25 issue.
NCUA Merger Registry To Launch In October
WASHINGTON-NCUA said last week its national merger registry will be functional by October. The registry, which had been requested initially by CUNA, will serve to provide names of potential partners in voluntary mergers. The trade groups have also pressed NCUA for additional disclosures on how it works with state regulators in cases where state and federal CUs are exploring a merger, and for additional transparency.
SACU Offers Special Solar Loan
SAN ANTONIO-San Antonio FCU (SACU) last week announced a solar home improvement loan program that will be available to homeowners in this market and Houston. The goal is to make solar energy more affordable and to allow members to invest in alternatives sources of power to reduce monthly power bills.
SACU is partnering with other providers in a larger initiative called "Bring Solar Home, an initiative of Solar San Antonio. Partners in the program are pointing to significant decreases in the cost of installing solar system, along with rebates available from some energy providers and federal tax credits, as reasons more consumers should consider solar power.
"SACU is proud to provide this innovative solar home improvement product that promotes alternative energy use and lower energy costs," said Chuck Smith, SACU director of lending.
ASI Announces Second Special Assessment
DUBLIN, Ohio-Private credit union insurer ASI, battered by losses among its Nevada credit unions, announced a 15 basis points special premium assessment for 2010, its second in a row.
The premium will be assessed on all primary insured credit unions of record on Sept. 30 and based on the total shares reported as of June 30.
In addition to the premium, ASI announced a change in its deposit requirement effective Dec. 31: from of a tiered rate of 1.0% to 1.3% based on CAMEL rating, to a flat 1.3% rate for all primary insured member credit unions.
"Lower yields on our high-quality government bond portfolio and a hesitant economic recovery have strained our earnings, while weaknesses in a small number of member credit unions have required a more aggressive posture when funding our loss reserves," Dennis Adams, president of ASI, said. "The move to increase the fund's equity ratio through the increased deposit rate will enhance equity sufficiency and satisfy regulatory requirements at the least cost to our members."
Bethpage FCU Teams With Hockey's New York Islanders
BETHPAGE, N.Y.-Bethpage FCU announced the renewal of its sponsorship deal with professional hockey's New York Islanders, under which the $3 billion credit union will present a number of team community initiatives including the Islanders Kids Club, the Islanders Community Events (I.C.E.) Tour and Islanders at School Program.The 2010-2011 season will mark the fourth consecutive year the Islanders Kids Club is presented by the credit union and the third year in a row that it will partner with the I.C.E. Tour.