Even though the nation's economy tanked in 2008 and many Americans had trouble making ends meet, the two leaders of the top credit union trade associations each had a very good financial year.
CUNA President/CEO Dan Mica's total compensation was $1.85 million last year, a 12% increase from 2007. NAFCU President/CEO Fred Becker's total compensation in 2008 was $485,993, a 22% increase from 2007.
Mica, who has announced that he will leave his position at the end of 2010, had a base salary and fringe benefits totaling $810,528; his bonus and incentive compensation was $667,393; his car allowance was $26,617; and his deferred compensation was $349,039.
Becker's base salary in 2008 was $331,859. He received $83,125 in bonus and incentive compensation, $66,764 in deferred compensation, $3,500 in nontaxable benefits and $745 in other payments.
The information was contained in IRS Form 990 filed by each of the groups.
CUNA and NAFCU have had very different financial performances recently.
Last year, CUNA's restricted net assets declined $7.9 million. It had $2.6 million in unrestricted assets at the end of 2008, compared with $10.6 million at the end of 2007. Its pretax income last year was $887,173, compared with $3.2 million in 2007.
It also experienced severe losses in its defined benefit plan. Because of market losses, the association had to put in $9 million last year to meet regulatory requirements. This year, it expects to add more funds because of market losses earlier this year. Also, CUNA will have to write off part of the value of its $940,486 share in U.S. Central Corporate Federal Credit Union as a result of U.S. Central's conservatorship.
Those and other losses have caused CUNA to lay off 26 employees this year, freeze salaries of senior staff and institute mandatory five-day furloughs.
The association has a $56 million annual budget and 216 full-time-equivalent employees.
CUNA Chairman Kris Mecham wrote in a statement that Mica's compensation ranked in the middle of similar sized trade associations. He also noted that Mica was responsible for significant achievements, including increasing CUNA's political clout and legislative victories on issues such as bankruptcy reform and ensuring that credit unions had parity with banks when Congress raised the amount of deposits insured from $100,000 to $250,000.
The IRS requires the association to list the compensation for top earners. The compensation for those four were: Executive Vice President Richard McBride, $437,368; Executive Vice President and General Counsel Eric Richard, $341,051; Executive Vice President John Franklin, $337,934; and Senior Vice President of Policy Analysis Bill Hampel, $299.247.
NAFCU's net income was $400,000 last year. NAFCU had $12.9 million in unrestricted assets at the end of 2008, compared with $12.5 million at the end of 2007. The association was hurt by the declining return on its investments, which was $247,964 last year, compared with $395,130 in 2007.
The association has 67 full-time equivalent employees and an annual budget of $11.5 million.
NAFCU's board said it made the decision about Becker's compensation after hiring a consultant who said that even with the increase, his compensation package was below the median of comparable organizations.
The board also noted in its IRS filing that Becker has led the association and was chief advocate of legislative and regulatory successes, including helping to ensure the Bush administrations plan for a single bank regulator wasn't enacted and defeating efforts to allow bankruptcy judges to rewrite the terms of mortgages.
In addition to Becker, the other top salaried officials at NAFCU were: Executive Vice President Dan Berger, $339,807; Executive Vice President/Chief Operating Officer Pat Morris, 276,701; and Senior Vice President Jay Morris $176,528.
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