Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
Incentive-based comp. plan leads NCUA discussion
ALEXANDRIA, Va. (2/17/11)—Unsafe and unsound incentive-based compensation will be a main focus of today’s National Credit Union Administration (NCUA) monthly board meeting, and corporate federal credit union chartering guidelines, Credit ratings and interest-rate ceilings are also on the agenda. The Credit Union National Association’s Deputy General Counsel and Senior Vice President for Regulatory Advocacy Mary Dunn has said that the incentive-based compensation guidelines will not require reporting of executive salaries. Rather, the guidelines will seek to discourage credit unions from giving bonuses for risky financial activity by directors. Dunn said that the NCUA regulation would be substantively similar to a recent joint federal regulator proposal that, according to a Federal Deposit Insurance Corporation (FDIC) release, “prohibits incentive-based compensation arrangements that encourage inappropriate risk taking by covered financial institutions and are deemed to be excessive, or that may lead to material losses.” Credit unions with over $1 billion in assets will be subject to the regulation. The NCUA and other federal regulators are required to write joint regulations on executive compensation by the Dodd-Frank Wall Street Reform Act. The NCUA last year banned awarding so-called "golden parachute" executive compensation packages to executives of troubled corporates, and introduced new rules that require corporates to disclose their executive compensation packages. A final vote on a corporate federal credit union chartering proposal is scheduled to take place during the meeting. The NCUA late last year proposed new chartering guidelines that would help the agency’s Office of Corporate Credit Unions (OCCU) to judge whether a proposed corporate credit union would uphold the provisions of the Federal Credit Union Act, promote safety and soundness within the credit union industry, and provide quality services to members. The NCUA's monthly report on the status of its insurance funds will also be delivered during the open portion of the meeting, and a creditor claim, insurance appeals, and supervisory matters will be discussed during the closed portion of the meeting. For the full NCUA meeting agenda, use the resource link.
Other Resources

RSS print
News Now LiveWire
#NewsNow: @CFPB offers tips for consumers who think their credit/debit cards have been hacked. http://t.co/rHnfYkJPIj
9 hours ago
See who's 1st to earn @CUNA's new biz development designation #NewsNow http://t.co/vn5ch4HkRC
11 hours ago
Joe Bergeron, president/CEO of the Association of Vt. CUs, has been re-elected to the board of the @NCBACLUSA
11 hours ago
NCUA reminds: CU managers/directors looking to improve leadership skills still can register 4 Leadership Boot Camps. http://t.co/0AUtIpWNqr
11 hours ago
Australia's Customer Owned Banking Association is @fileneresearch 's latest Gold benefactor.
13 hours ago