WASHINGTON–A point of clarity is being shared around rules related to executive compensation that the NCUA board will consider on Thursday of this week.
As CUToday.info reported here, among the three items on the board’s agenda is a proposal related to incentive-based compensation.
That rule is actually a joint-rule required of several financial regulators that was part of the Dodd-Frank Act and which, as America’s Credit Unions Chief Advocacy Officer Carrie Hunt pointed out, has been percolating for about a dozen years now.
Two Different Rules
“To be clear…when the NCUA issued their semiannual regulatory agenda…there were two different rules relative to executive compensation,” said Hunt. “One was a in a stated rulemaking that has not yet been proposed, and based on the brief description it would require federal credit unions to report information relative to executive compensation similarly to what state credit unions already report on the 990s. That is not what is being proposed (for Thursday). What potentially will be proposed by the NCUA…is a rule that comes out of Dodd-Frank…(where there) certainly will be some additional reporting requirements, but that will making will have a bigger impact on for-profit and institutions regulated by the SEC. So, there will potentially be some additional burden and as we read that proposal we'll be providing our comments on that.
Also on the agenda for Thursdays meeting is the federal credit union interest rate ceiling and proposed rules on CU succession planning.