SCRANTON, Penn.–Valor Credit Union here was forced to report as stolen a Mercedes Benz S550 that had been provided as a perk to its former CEO.
The Times Tribune reported the credit union had fired former CEO Sean Jelen after he had allegedly been driving the vehicle, valued at more than $100,000, while intoxicated. Jelen failed to return the car for several weeks after the firing, which led to the stolen vehicle report.
The primary focus of the Times Tribune’s report, however, was whether a Mercedes Benz S550 was an excessive perk for a $227-million credit union to be offering its CEO. The publication surveyed other local banks and credit unions and found all offered lesser auto-related perks and, in some cases, significantly less.
People’s Security Bank’s CEO, for instance, is provided with a used 2013 Audi A8L valued around $70,000. The president of Fidelity Bank is provided with a 2013 BMW 5 Series, the Times Tribune reported.
The newspaper also suggested in its report that “Credit unions, however, are supposed to be different.” The Tribune quoted Wilson Smith, of Burlington Consulting Co. in Paoli, Penn., a bank analyst, as saying, “A bank executive doesn’t want to show up in the nicest vehicle. It can be showy and send the wrong message. Especially credit unions, which are led by real people, focused on providing financial services to members. A $227-million credit union providing a CEO with S550 would not represent the company the way the board would want.”
The Times Tribune said NET FCU’s CEO gets a $125 a week car allowance from the credit union, while Penn East FCU’s CEO gets $50 a week. Cross Valley FCU provides its CEO with a 2015 Ford Edge.
The Times Tribune said a spokesperson for Valor Credit Union, when asked if current events prompted the board to reconsider whether the S550 was an excessive perk, responded by saying, “We’ve been hearing that a lot and the board has been discussing changing the way things are done.”