One Cost Reduction Under Conservatorship: CU's Board Compensation
SAN BERNARDINO, Calif.-One expense line Arrowhead will be saving while under compensation appears to be board compensation. Government documents show Arrowhead paid its board members, which state-chartered CUs are permitted to do in California.
Information listed on Guidestar.org, which posts IRS forms for non-profit companies, indicates all but one of the CU's nine board members were compensated, with total board compensation $27,038 ($20,179 in 1099-reportable compensation, $6,859 in "other" compensation). The highest reported compensation was paid to board member James Ferguson, $6,679 plus "other" compensation of $2,327. Board member Robert McNitt showed $5,849 in compensation plus $1,186 in "other" compensation.
On Page 20 of the IRS form, boxes are checked indicating compensation included "travel for companions" and "health or social club dues or initiation fees," but it is not noted if this compensation went to any directors, or to executives and employees of the credit union. It does indicate Arrowhead: "followed a written policy regarding payment or reimbursement or provision of all the expenses described above."