I read with interest a letter from CUNA Mutual Group Board Chairman Loretta M. Burd indicating the board requested and obtained President & CEO Michael B. Kitchen's resignation (CU Journal, August 9).
That is a good start. Now that the board has successfully obtained Mr. Kitchen's resignation, when will the policyholders obtain the board of directors' resignations?
Our credit union bond and related policies came up for renewal June 2004. The request for proposal received from the CUNA Mutual Group was shocking. CUNA Mutual's premium request was 100% more than the premium requested from St. Paul & Chubb Insurance. The deductibles and the policy limits were identical.
Why the 100% mark up? The Wisconsin State Insurance Commissioner advised me the CUNA Board of Directors receive compensation exceeding $46,000 per year over and above "cash payments for fees and expenses..." Not bad for attending a couple of board meetings each year in such undesirable locations as Hawaii. With all expenses paid is it a meeting or a vacation?
Maybe if the Board of Directors wasn't getting greased the policy holders' premiums could be reduced to levels in keeping with St. Paul and Chubb. Personally, I think Michael B, Kitchen's total compensation exceeding $891,000 (year ending December 2002) was money well spent but then I am not a policyholder so it didn't really cost me a dime!
Stuart Perlitsh, CEO
Glendale Area Schools FCU, Montrose, Calif.
