Editor’s Column: Trust and Integrity Must Be Protected
Trade publications are criticized by some as cheerleaders for their respective industries. They’re captives of the advertisers. Credit Union Times was founded in 1990 to provide unbiased news coverage the industry was lacking. We work incredibly hard to keep it that way, reporting the good and the bad.
Despite our efforts I received a letter from a reader regarding an article that appeared in the May 23 issue featuring an advertiser–right next to an ad from said advertiser. The article was admittedly a softball piece on CU Members Mortgage marking its 30th anniversary in business. We do these types of articles on occasion to keep readers informed of milestones that various providers (as well as credit unions and others) reach and to break up the hard news. Different readers enjoy a variety of stories.
An Executive Compensation Solutions survey found that credit unions with assets greater than $1 billion paid their CEOs in 2011 an average of $486,117, up from $460,234 in 2010. A similar survey by the ABA found banks with more than $1 billion in assets paid their CEOs an average of $550,479 in 2011. The difference in compensation between the credit union and bank executives is nearly 12%, and credit union CEOs aren’t eligible for nearly so sweet deals in retirement as the bankers for much of the same responsibilities.
Overall credit union executives do earn significantly less than their bank counterparts, and while that alone doesn’t justify the credit union tax exemption, it’s certainly a factor to consider.