 |
 |
This news release has been expired
|
Credit Union CEO Salaries Rise Faster than Predicted
Madison, WI
Thursday, July 12, 2007
For Immediate Release:
July 12, 2007
For more information, contact:
Jessica Hrubes, Director of Marketing
800.252.2664 or 608.271.2664, ext. 5362
jessica@cues.org • cues.org
Credit Union CEO Salaries Rise Faster than Predicted
MADISON, Wis.—Salaries for credit union CEOs continued to rise this year; the average base salary increase was 8 percent, as reported in the 2007 CUES Executive Compensation Survey. The Credit Union Executives Society's survey, administered by enetrix, Madison, Wis., is based on data supplied by nearly 900 credit unions.
Among respondents, 56 percent provided data in last year's survey, enabling accurate measurements of the rate of change for repeat participants. The survey shows that a considerable majority of credit union CEOs are college degreed; additionally, they have significant longevity in the industry. More than 80 percent of the participating CEOs have spent over 15 years working for credit unions, and almost 50 percent have been in their current position for more than 10 years.
Nearly 80 percent of CEOs reported receiving bonus or incentive payments, although the amount of those bonuses—on average, less than 14 percent of base salary—remain small relative to banking executives. Credit union earnings and board evaluations were most often cited as driving bonuses, and the use of bonuses increases with the credit union's size. Other credit union executives are also being paid more this year—total compensation among those with the title of EVP,COO, CFO, CLO, branch executive and CUSO executive rose an average 7.7 percent since last year.
"As compensation regulations become more complex and the financial services industry becomes increasingly competitive, boards will need to be even more sophisticated in their approach to executive compensation," remarked Carol A. Humenick, CCE, Chairman, CUES' Board of Directors and SVP/Community/Government Affairs at Citadel Federal Credit Union, Thorndale, Pa. "CUES is pleased to bring this vital data to credit union leaders, and to offer executives and board members the tools and educational resources to navigate the changing compensation landscape, and to make informed decisions," added Humenick.
Charlie Carlson, president/CEO, enetrix, points out that boards need to ensure objectivity in determining executive compensation. "The reality is that boards need to be careful to ensure objectivity and transparency in planning executive compensation," said Carlson. He also remarked that effective long-and short- term incentives are an effective means of retaining senior executives who are in their peak years of performance, allowing credit unions to "bridge top executives to retirement" Carlson said the survey continues to benefit from high rates of participation. "It speaks highly about the commitment of CUES members to the organization and to the industry that credit unions continue to share this information, ensuring that the CUES Executive Compensation Survey remains an invaluable data source"
For more information on the CUES Executive Compensation Survey, or to purchase the report, visit survey.cues.org or click on cues.org and select Products.
CUES is a Madison, Wisconsin-based independent membership association for credit union executives worldwide. Its mission is to advance the professional development of credit union CEOs, senior management and directors.
###
July 12, 2007
For more information, contact:
Jessica Hrubes, Director of Marketing
800.252.2664 or 608.271.2664, ext. 5362
jessica@cues.org • cues.org
Credit Union CEO Salaries Rise Faster than Predicted
MADISON, Wis.—Salaries for credit union CEOs continued to rise this year; the average base salary increase was 8 percent, as reported in the 2007 CUES Executive Compensation Survey. The Credit Union Executives Society's survey, administered by enetrix, Madison, Wis., is based on data supplied by nearly 900 credit unions.
Among respondents, 56 percent provided data in last year's survey, enabling accurate measurements of the rate of change for repeat participants. The survey shows that a considerable majority of credit union CEOs are college degreed; additionally, they have significant longevity in the industry. More than 80 percent of the participating CEOs have spent over 15 years working for credit unions, and almost 50 percent have been in their current position for more than 10 years.
Nearly 80 percent of CEOs reported receiving bonus or incentive payments, although the amount of those bonuses—on average, less than 14 percent of base salary—remain small relative to banking executives. Credit union earnings and board evaluations were most often cited as driving bonuses, and the use of bonuses increases with the credit union's size. Other credit union executives are also being paid more this year—total compensation among those with the title of EVP,COO, CFO, CLO, branch executive and CUSO executive rose an average 7.7 percent since last year.
"As compensation regulations become more complex and the financial services industry becomes increasingly competitive, boards will need to be even more sophisticated in their approach to executive compensation," remarked Carol A. Humenick, CCE, Chairman, CUES' Board of Directors and SVP/Community/Government Affairs at Citadel Federal Credit Union, Thorndale, Pa. "CUES is pleased to bring this vital data to credit union leaders, and to offer executives and board members the tools and educational resources to navigate the changing compensation landscape, and to make informed decisions," added Humenick.
Charlie Carlson, president/CEO, enetrix, points out that boards need to ensure objectivity in determining executive compensation. "The reality is that boards need to be careful to ensure objectivity and transparency in planning executive compensation," said Carlson. He also remarked that effective long-and short- term incentives are an effective means of retaining senior executives who are in their peak years of performance, allowing credit unions to "bridge top executives to retirement" Carlson said the survey continues to benefit from high rates of participation. "It speaks highly about the commitment of CUES members to the organization and to the industry that credit unions continue to share this information, ensuring that the CUES Executive Compensation Survey remains an invaluable data source"
For more information on the CUES Executive Compensation Survey, or to purchase the report, visit survey.cues.org or click on cues.org and select Products.
CUES is a Madison, Wisconsin-based independent membership association for credit union executives worldwide. Its mission is to advance the professional development of credit union CEOs, senior management and directors.
###
Lynette von Allmen
Marketing Admin. Assistant
Credit Union Executives Society
Madison, WI
800-252-2664
608-441-3409
