The Changing Compensation Environment
As the former CEO of a credit union, it’s crucial for me to understand the landscape of Supplemental Executive Retirement Plans (SERPs). Cardwell Consulting has been conducting research for 22 years as detailed in the 2023 Pearl Meyer CEO and Senior Executive Total Compensation Survey. While this survey focuses on CUs with assets over $1 […]
Persuading the Board on Executive Retirement Packages
The overall environment is gloomy, volatile, inflationary, and mired in recession. How can credit union executives work with boards to agree on market-rate executive retirement packages? It used to be that credit unions didn’t feel the heat of competition. They had a monopoly on their SEGs and there was general parity for technology across other […]
5 Generations of Credit Union Leaders, Compensation, and Recession
The times, they are a-changing. In fact, 5 generations ago, credit union leadership was completely different. Most leaders were volunteers with little expertise in running a financial institution. Today, leaders have more skills, experience, and support than ever. And, when it comes to finding a good credit union leader, you get what you pay for. […]
Thoughts on the CUES Executive Compensation Numbers
According to CUES, the average total executive compensation rose by 14.9% over the last year. That’s stunning. Usually, we look for increases of 3–4%. But inflation, higher demand for talent, and overall asset growth are driving a remarkable rise in total compensation numbers. NAFCU’s data shows a slightly lower compensation increase at around 12%. However, […]
Strategic Use of Capital in Credit Union Benefits
The strategic use of capital has never been more important. For some background, the NCUA allows credit unions to use up to 25% of their capital to fund HR benefits with “impermissible” investments (equities, etc.). These HR benefits can fund health insurance, SERPs, and more. But a 25% cap necessarily limits the amount of capital […]
More Than Salary: New Compensation Demands for CU Executives
A standard salary and standard retirement plan is no longer enough to recruit the leaders of the future and satisfy them in the long run. Credit unions must get up to speed and pay their executives the way the market demands.
Executive Comp Through the Lens of Strategic Initiative
SERPs (Supplemental Executive Retirement Plans) aren’t just shiny carrots to dangle in front of prospective talent—they can also be an asset to the credit union itself.
If Credit Unions Could Issue Stock Options—Should they?
Today, many credit unions are growing and adding C-level talent—many from for-profit industries that had stock options. Now that credit unions are competing on a new playing field of fintechs, digitally service-oriented big banks, and big tech firms, retaining and recruiting the right leaders is essential. The demand for talent is at an all-time high, […]