Colorado’s credit union league on Wednesday came to the defense of David Maus, the president/CEO of the $1.1 billion Public Service Employees Credit Union of Denver, following an attack by the banking lobby over his pay.
The broadside by the Colorado Bankers Association appeared in a Denver newspaper this week and comes as PSECU prepares for its annual meeting this Saturday.
It was disclosed last month that according to PSECU’s IRS Form 990 from 2010, Maus was paid $11 million in 2010 including retirement compensation and other income.
In a blog posting, the president/CEO of the Colorado Bankers Association, Donald Childears, hit on what he called a “tax subsidy for credit unions” and that the tax exemption “is not meant to provide this level of compensation” for the CEO of a credit union.
In 2010, “Public Service Employees Credit Union made a net income of $12.2 million and paid zero in taxes,” wrote Childears. “A bank making that same amount would pay almost $5 million in income taxes. Credit unions need to pay their fair share.”
Scott Earl, president/CEO of the Mountain West Credit Union Association, said in a statement, “Given difficult economic times, I understand the general feeling of alarm from the public. I also recognize the board of directors’ position and responsibility to retain quality leadership during difficult economic times. “Credit unions are democratically controlled. This means that the board of directors are voted on by the members and volunteer their services. They benefit solely from acting in the best interest of their fellow members; they are not paid. “The cooperative structure of credit unions makes them unique to other financial institutions. Salary and total compensation cannot be compared and are subject to board decision. Mr. Maus’s compensation package reflects his nearly 33 years of service and successful growth efforts.”
He added, “Ultimately, this is an issue between Mr. Maus, the board of directors and the members of Public Service Credit Union, not the general public or even the credit union community.”
Earl said that those “who know and understand how a credit union operates should respect the process this board went through and the decisions they have made to compensate and retain their CEO. I have had the pleasure of working with Dave for more than 25 years. He is extremely well-respected as a leader and has spearheaded the growth of Public Service Credit Union during a difficult time for financial institutions.”