Overcome the CEO compensation data lag
5 tips to help boards navigate this tumultuous time and lay a solid foundation for the future
Today’s credit unions must navigate overwhelming competition for talent, a complicated economy, a pandemic that just won’t end, and industry change due to mergers. To succeed in these complex times, they need a top-notch CEO. In all, 2022 is a great year for credit union boards to be reviewing how they compensate the credit union’s top leader.
Overcoming the Compensation Data Lag
Typically, compensation surveys and information reported to the government are good sources of data about base pay ranges for credit union CEOs. However, in 2022, the data available and the process credit unions need to use to interpret it is somewhat unusual.
Much of the currently available compensation survey data is from 2019, which means calculations for comparisons and the bottom-line value of compensation packages reflects pre-pandemic information. Data from the IRS Form 990 filings of state-chartered credit unions—including total compensation, base salary, deferred and other compensation—will be of a similar age. Other, more recent market surveys likely suffer from limited sample sizes and geographic concentration. Plus, they may be skewed due to the huge amount of federal stimulus that boosted assets that might have been used as a performance metric for executive compensation.
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