Pot of Gold Awaits CU Converts

PLANO, Texas – Shareholders of Viewpoint Bank, known until last year as Community CU, are expected when they meet in two weeks to approve a pot of more than $30 million in stock and stock options for insiders—by far the richest bonus pool ever granted by a credit union-convert. The shareholders are expected to approve an Equity Incentive Plan that will dole out 1.6 million shares of restricted stock to managers and directors valued at $30 million, and an additional 1.2 million shares subject to options and stock appreciation rights, according to the ex-credit union’s annual proxy statement. The largest beneficiary of the bonus pool is expected to be Gary Base, president and CEO of the $1.4 billion credit union-turned-bank, who stands to receive 140,000 shares valued at $2.5 million. The shares will vest in equal installments over five years, but the former credit union executive will earn dividends on them and have full voting rights the day they are awarded. Base earned more than $1 million last year from the conversion of his credit union, including compensation of $920,000 and more than $200,000 in profits on his newly minted Viewpoint stock., according to the proxy. Shares in Viewpoint, the largest credit union to convert to bank, have soared 80% to $18 each, since the credit union-convert went public last October, just 10 months after its switch to bank.