CUSO Senior Execs see Highest Median Salary Increase, Info Systems Execs., EVPs See Sharpest Declines, CUES Reports

MADISON, Wis. – Salaries for CEOs at credit unions in 2004 saw some upward movement compared to last year but senior executives at credit union service organizations enjoyed the highest median compensation increase, which included a bonus, for a grand total of $9,692. In a preview of its upcoming 2004 CUES Executive Compensation Survey culled from 879 credit unions, the findings revealed that CEOs saw a median increase of $4,000 to $135,000 in 2004. Of all executives salaries tracked, senior CUSO executives experienced the highest increase going from a median of $89,508 in 2003 to $99,200 in 2004, a raise of $9,692. CUES tracked the following executive positions: CEO, executive vice president; second executive officer; chief operating officer; chief financial officer; chief lending officer; branch/member services executive; marketing executive; human resources executive; information systems executive; e-commerce executive and senior CUSO executive. All figures indicated include a bonus amount. By far, information systems executives experienced the sharpest decline from a median $62,981 in 2003 to $55,773 in 2004, a median drop of $7,208. Executive vice presidents also saw a drop in salary: from $93,075 to $87,268 in 2004. While branch/member services executives saw the smallest increase – from $59,008 in 2003 to $59,512 in 2004 – a mere $504. The top three factors for determining a bonus or incentive award were based on earnings (54%); board evaluations (51%) and loan growth (31.5%). Not much weight was placed on whether regulatory compliance goals were met (3%). For the first time in its 25 year history of doing the survey, CUES added two new categories to track: CUs in the $600 million to $999.9 million range and CUs in the $1 billion and above range, said Josie Jach, CUES services and products coordinator. “There were 58 credit unions with more than $1 billion in assets that participated, which is the highest number of (those size CUs) we’ve ever had,” Jach said. “Usually, we would stop at $600 million but because we had so many more billion-dollar credit unions this year, they actually helped create the new categories.” Look for more in-depth coverage of the survey and what the findings mean in the July 14 issue of Credit Union Times. [email protected]