The NCUA Board is scheduled to discuss and vote on a final rule at next Thursday's meeting that would ban troubled federally insured credit unions from offering golden parachutes to their executives.
Under the proposed rule, agency defines golden parachutes as payments that are "contingent on the termination of that person's employment and received when the credit union making the payment is troubled, capitalized or insolvent."
Those would be banned at credit unions that are insolvent, in conservatorship or have ratings of CAMEL 4 and 5. All federally insured credit unions would be banned from paying legal or professional expenses incurred in federal or state administrative proceedings that result in a monetary punishment, cease and desist order.
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