ALEXANDRIA, Va.–When the National Credit Union Administration board meets on Thursday it could propose a new rule to require federal credit unions to provide information on executive compensation to their members.
There are three items on the board’s agenda: succession planning, the federal credit union loan interest rate ceiling, and proposed rules on incentive-based compensation.
It is that latter item that could require federal credit unions to disclose how and how much they are compensating their executives, much like what state-chartered credit unions already provide through their tax forms. According to the White House Office of Management and Budget’s recently released spring regulatory agenda, the incentive-based compensation is aimed at providing the greater disclosures to members in addition to what FCUs are required to disclose through IRS Form 990.
ABA, State Bankers Urge Disclosures
The American Bankers Association and State Association Alliance both said in a statement they have been strongly advocating for credit union accountability and transparency, “believing that such reporting could help provide critical data on credit union activities to consumers and communities alike.”
The meeting will be live streamed starting at 10 a.m. ET at NCUA.gov. CUToday.info will provide complete coverage.