Central 1 Credit Union

Central 1 Credit Union

March 26, 2015 14:00 ET

CEOs of Large BC Credit Unions Paid Much Less Than Most Corporate Leaders, Says Third-Party Report

VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 26, 2015) - The chief executive officers of BC's largest credit unions are paid about 25 per cent as much as their counterparts on the Top 100 Public Companies in BC list compiled by Business in Vancouver, says a report commissioned by Central 1 Credit Union.

The study, done by the Hay Group, also shows that, on average, the CEOs at BC's largest credit unions receive about eight to 22 per cent of the total direct compensation of their peers working in positions of similar scope in the national financial sector, and approximately five to 10 per cent the compensation of the CEOs at Canada's big banks.

Central 1 commissioned the Hay Group report to provide credit unions and their members with important context and information for when they are considering compensation levels for credit union CEOs. The report looks at total direct compensation, which includes base salary and any cash or equity incentive plans.

This year, some of the province's credit unions are disclosing annual CEO and board of directors' compensation. This step is in line with guidelines issued by the Financial Institutions Commission (FICOM).

The Hay Group report compares compensation in different industries and sizes of organizations by using a common type of analysis, often called "job size" comparison. This approach adjusts not only for size but also for scope, complexity, strategic demands, and other factors, using a methodology that compares jobs based on elements that are widely recognized as drivers of pay.

"Our research shows that when we take into account organization size and complexity, we find that on average BC credit union CEOs are paid less than their counterparts at public companies and at private sector financial services organizations," the Hay Group report says.

"Credit union boards continue to work on strengthening the governance of their credit unions. Greater transparency about CEO pay is just one of the ways they are doing that," said Don Wright, CEO of Central 1.

A list of BC credit unions that have released their compensation information as of today is available here.

Read an executive summary of the Hay Group report.

About Central 1

With offices in Vancouver, Mississauga and Toronto, Central 1 - which holds approximately $13 billion in on balance sheet assets - provides wholesale financial products, trust services, investment banking services, along with digital and payment services that power innovation in retail financial services for more than 300 credit unions and institutional clients from coast to coast.

In addition, Central 1 is the primary liquidity manager, payments provider and trade association for our member/owner credit unions in B.C. and Ontario. Our members represent a consumer-oriented, full-service retail financial system that collectively serves 3.3 million members and holds more than $97 billion in assets. For more information, visit www.central1.com.

Contact Information