Board compensation can be a strategic investment
Success with paying directors requires both thoughtfulness and hard work.
Whether and what to pay credit union directors is getting attention.
CUES Supplier member Kaufman and Canoles goes into detail in an article on the subject.
“It is a well-known fact that federal credit unions are not permitted to directly compensate members of their boards of directors,” the article states. “As a result, a number of FCUs are converting to state charters primarily so they can pay their directors.
“An estimated 18 states allow directors of state-chartered credit unions to be compensated,” the article continues. “Some of these state laws are very specific. For example, the Arizona statute provides that a credit union may compensate an officer, director or committee member for the officers’, directors’, committee members’ services to the credit union. Providing reasonable life, health, accident and similar protection is not considered compensation. Colorado has a similar law. Four states—Georgia, Kentucky, South Dakota and Wyoming—are silent on the degree or type of board compensation that may be paid.” The article provides charts with details by state.
continue reading »