Executive pay Photo: Shutterstock.

May 15, 2019 will become a new Tax Day for some of the nation’s largest federal and state credit unions. On that date, these credit unions, including some of the national industry organizations, leagues and associations, will be required to pay a 21% excise tax on executive pay that exceeds $1 million in total salary, bonuses, incentives and deferred compensation.

While it may be tempting for senior management and boards to say they want to avoid paying the 21% excise tax because they are concerned about economic costs and the possibility of bad publicity when their compensation information becomes public, that strategy could end up hurting their credit unions.

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Peter Strozniak

 

Credit Union Times

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