Should CU Directors Be Compensated?

I found a lot of truths in Mike Welch’s Nov. 5th column, “Some Credit Union Myths Refuse to Die,” however he left out two important myths that are still alive in our industry. The first is that the taxation status of credit unions is dependent on the non-pay status of directors. The second is that we can find the best directors for our credit unions if we retain our selection process of people to those who have lots of time to donate without pay. I gave out a paper I wrote entitled “Re-igniting the Volunteer Spirit” at the National Association of Credit Union Chairman Conference that quoted and discussed the message behind a sentence from the Discussion Guide that was distributed for the 27th Annual Chairman’s Roundtable Forum. The sentence read: “Most volunteers want to know what’s in it for them.” It is, as I am sure you know, a very touchy subject in some circles but beginning to gain general acceptance. The paper was given out at the start of one of the roundtables and discussed during the middle of that session. One of the participants said “Okay, George, you can throw the grenade now.” To which another participant said “Hell, he has already thrown the grenade, now pull the pin!” The table was almost evenly divided when we broke up, but an earlier session ended with about seven in favor of compensating directors and three against. The times they are a-changing. By the way, I noticed the current voting poll item on Credit Union Times’ Web site asks readers to vote on whether they agree or disagree that “As credit unions become larger and more complex should credit unions have the option of paying directors?” I’m looking forward to the results of your poll. George Plevretes Chairman Nassau Educators Federal Credit Union. Valley Stream, N.Y.