WASHINGTON — CUNA is urging NCUA to re-write its proposal for disclosure of "material" increases in compensation in mergers because the agency lacks "adequate substantiation."
"We seriously question whether the low figures NCUA has chosen are indeed 'material' or would entice a credit union official to make a choice that was not in members' best interests," CUNA's letter read. "Without further explanation from NCUA, it is unclear on what basis the agency could arrive at the appropriate level for disclosure.
"In addition, the proposal would single-out credit union documents regarding merger arrangements for a special review procedure under which individual members could access records relating to the compensation. The proposal does not explain why such a separate procedure is necessary nor does it take into consideration the burden such a procedure could impose, particularly on a credit union with a large number of members," CUNA added.
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CUNA recommended that the agency redraft its proposal and invite additional input on the issue.
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