Despite the lobbying efforts of CUNA and NAFCU and voting mostly along party lines, the House passed a measure to allow regulators to place additional restrictions on compensation packages for senior executives of large companies.
The bill, which passed 237-185, only applies to firms with $1 billion or more in assets, affecting 153 credit unions.
It allows regulators to place limits on "inappropriate or imprudently risky," pay packages. It gives shareholders more opportunity to weigh in on executive compensation through an annual nonbinding vote on salary and bonuses for top executives. The measure also mandates that federal regulators write rules requiring that financial institutions disclose incentive-based pay plans for their executives.
CUNA and NAFCU sent a joint letter opposing the measure, noting that credit unions are already subject to executive compensation restrictions as a result of NCUA regulations. The trade groups also contend that because of credit unions not-for-profit status they should be treated differently than for-profit companies, and the bill doesn't do that.
The Senate has not indicated when they will take up the measure.
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