Should CU Boards Be Compensated?
September 9, 2015 11:54 AM
Should credit union directors be compensated in some fashion, given the growing complexity of their fiduciary duties, or does payment in any form take away from a key philosophical and tangible part of "the credit union difference?" At the 38th Directors & CEOs Leadership Convention in Las Vegas last month, Credit Union Journal asked directors themselves (and one executive who previously served on a board) whether directors and supervisory committee members should be compensated for their time and effort.
Robert Rodosky, board chair, $185.5-million Class Act FCU, Louisville, Ky.
"I do not think credit union boards should be compensated. Credit unions are grass roots organizations. They are cooperatives. That is the one thing that separates us from the banks. We are volunteers and we serve on boards to give back to the community."
Sue Walters, supervisory committee, $120-million Torrance Community CU, Torrance, Calif.
No, being on a credit union board is strictly for volunteers. It is important to remember we receive certain perks, including trips to conferences such as this one. We also get training and some dinners.
Julie Brewster, director, $551.8-million Utah Power CU, Salt Lake City
Yes, because we spend a lot of time and do good services. Being a director is not easy. There is a lot of material to review and a lot of arguing before we come to a consensus as to what is best for the credit union. Compensation would not have to be a lot, but we are worth something. A few hundred dollars per month would be enough. We enjoy what we do and we do it for the members.
Rodger Smock, executive vice president, $151-million Priority One CU, South Pasadena, Calif.
I am a former director and now an executive, so I see both sides. I think the quality of the board might be better if directors received compensation, but that is a big thing to change.
Gary Tennefoss, director, $112-million Stark FCU, Canton, Ohio
No. I think it is just not right for the membership for directors to be compensated. People who volunteer do a better job on boards.
