Up to CU Board to Determine Fair Compensation for CEO

I couldn’t agree more with Mike Welch’s column in the August 11, 2004 issue of Credit Union Times, “Don’t Jump to Conclusions Regarding CEO’s Pay.” I find it very interesting that anyone, other than the members and the board at Portland Teachers Credit Union, should be concerned about its CEO’s compensation. It appears that some are quick to judge what is “fair”, yet none of those judging actually sit in Dias’ position or hold his responsibility or accountability. We don’t know what his goals and objectives were/are, and should be ecstatic that he is doing well. What is it about the American public that likes to see folks do good, just not too good? That one is still a mystery to me. While my compensation is nowhere near $1.6 million, the size of our credit union is nowhere near $1.6 billion. However, it is good to know that we have boards looking at what is happening in the financial services sector and realizing that talent required to effectively lead sizeable organizations does not come cheap. I’m confident that a board able to lead an organization of such magnitude is more than competent to determine its CEO’s compensation. If the board is not making effective decisions, there is a mechanism to have them removed. Should other boards at comparable institutions feel they need not pay their CEOs as large a salary that is their decision, and I support that decision equally. Isn’t that why the CUES Compensation salary quoted is called an average? We should support Cliff and his board and encourage them to use their size and income strength to do great things for the credit union movement. Obviously, they have many, many satisfied members who appreciate what is being done on their behalf, or PTCU wouldn’t have the growth. Not only should we support Portland Teachers Credit Union, but we should be able to rally around and defend the actions of credit unions nationwide that are doing whatever it is they need to be doing to secure the best leadership talent to carry out their vision for the future. Personally, I’m ready to support that salary to any banker or congressional person because I’m confident Mr. Dias earned every penny of it. Jeffrey Hendrickson President/CEO Dow Louisiana FCU Plaquemine, La.