Credit Union CEOs Earn Up to $846,600: Onsite Coverage
MONTREAL – Top credit union executives’ annual compensation ranges from $17,053 to $846,600 per year depending on asset size, according to the results of the 2015 NAFCU-BFB Executive Compensation and Benefits Survey. The results were revealed by Jack E. Clark of the Charlotte, N.C.-based Clark Research Associates, whose company performed the survey, at NAFCU’s annual conference in Montreal Thursday.
The $17,053 figure represents the 10th percentile (the lowest) of compensation for top executives at credit unions with less than $10 million in assets, while the $846,600 figure represents the 90th percentile (the highest) of compensation for top executives at credit unions with $1 billion or more in assets.
By comparison, annual compensation for top executives at credit unions with $150 million to less than $400 million in assets ranges from $157,753 to $306,800. At credit unions with assets totaling $400 million to less than $1 billion, top executives receive between $249,999 and $502,644 in compensation annually.
State chartered credit unions were included in the survey for the first time this year, Clark said. While the company invited all credit unions to participate, the survey included 512 credit unions (218 NAFCU members and 301 non-members) and 1,494 executives. It was conducted between March 12 and April 14, 2015.
The survey also revealed the average amount all credit unions surveyed budget for volunteer training – that number is $964 per volunteer annually. However, the amount varies based on asset size – for credit unions with $10 million to $20 million in assets, for example, the number is $260; for credit unions with more than $1 billion in assets, it’s $4,450.
Some top executives at smaller-sized credit unions earn more than their peers at larger-sized cooperatives, according to the survey. For example, compensation for CEOs at credit unions with $1 billion or more in assets starts at $405,000, while top executives at credit unions with $400 million to less than $1 billion in assets receive as much as $503,000.
Fifty-two percent of top executives surveyed said they have the potential to earn bonus, incentive or variable pay in 2015, but 48% of credit unions said they do not have a bonus program in place, compared to 30% that have a program in place but not a structured plan, and 22% that offer a bonus program with a structured plan. Larger credit unions are more likely to offer a structured bonus plan, however, with 73% of credit unions with $1 billion or more in assets reporting they have one in place, compared to only 15% of credit unions with $10 million to less than $20 million in assets.
Of the credit unions that offer a bonus payout plan for their top executive, loan growth, return on assets and membership growth are the three top factors in determining the payout, the survey revealed.
The survey also revealed that 27% of credit unions do not provide their board directors with benefits and do not cover business-related expenses. However, 60% of credit unions cover conference expenses, 53% pay travel expenses, 46% pay meeting expenses and 43% cover educational expenses for directors, the survey said.