APPLE VALLEY, Minn.—The planned merger between $9.5-billion Wings Credit Union here and $10.3-billion Ent Credit Union, based in Colorado Springs, Colo., would deliver a $7-million payout to Wings CEO Frank Weidner, according to details in a ballot sent to members last week, the Minneapolis/St. Paul Business Journal reported.
If members approve the merger—voting runs through Dec. 4—Weidner will step down as CEO of the Apple Valley-based institution but remain for one year as an advisor. During that period, he’ll continue to receive his current $2.3 million salary in addition to the $7-million severance package, which the ballot says equals three times his annual base pay plus incentives.
Under the merger plan, Ent CEO Chad Graves, based in Colorado Springs, would lead the combined credit union once the boards of both institutions meet to finalize the deal.
"Our executive compensation structure aligns with the business goals and strategy of the credit union and is based on the research and recommendations of national compensation experts retained by the board of directors," Wings Vice President of Marketing Brent Anderson said in an email sent to the Minneapolis/St. Paul Business Journal.
The merger, announced in April, would form a credit union with approximately $19 billion in assets, ranking it among the 10 largest in the nation. The combined organization would retain the Wings Credit Union name and be chartered in Colorado, while roughly half of its executive leadership team would remain based in Minnesota.
The Minneapolis/St. Paul Business Journal said the completion of the merger would trigger compensation for other Wings executives as well.
Chief Administrative Officer Greg Higgins would receive a base compensation increase of $299,766 due to the “increase in the scope and complexity of his role,” according to the voting ballot. He will also be eligible for a one-time bonus of $175,000 and a retention bonus of three times his annual compensation to be awarded if he remains employed with the new credit union for three years. A 2023 IRS Form 990 filing (the latest available) showed Higgins base compensation was $389,271.
Norm Creveling, chief lending officer, will receive a yearly base compensation increase of $343,572 for the same reasons as Higgins as well as a retention bonus of three times his annual compensation if he remains employed with the new entity for three years. His 2023 base compensation was $345,000, according to the 990 filing.
Like Weidner, Chief Experience Officer John Wagner will step down from his role if the merger is approved and will receive a payment of $1.4 million, which is two times his annual base salary, plus target incentives, the Minneapolis/St. Paul Business Journal reported. The ballot did not mention compensation for Graves.