Top management of credit unions must now be aware "they are no different from any other industries sharing the economic pain" and look toward possible compensation reductions, a California salary consultant warned Thursday.
"We have seen and heard about, situations where credit union executives are already talking to their boards about reducing current compensation because of the significant impact on both the income statement and the balance sheet," observed Alec Berkman, head of Executive Compensation Solutions of Covina.
Moreover, the U.S.Central/WesCorp conservatorship by NCUA "is a signal that the credit union movement anticipates an extended recovery from this challenging economic environment." His firm has yet to see situations where CU boards have asked execs to reduce salary. But, he went on, "we have heard of several cases of suspended bonuses or executive retirement plans being abrogated."
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