LAS CRUCES, N.M.–What are credit union leaders saying about some of what is taking place in the industry?

Here’s a look at how readers have responded to several recent stories reported by the CU Daily.

As the CU Daily was first to report here, as part of a merger with Texas Dow Employees CU, Space City CU in Houston is proposing to pay $6.75 million to three top execs, which represents 57% of the total equity being distributed.

Among the most-read stories this week, readers responded on both LinkedIn and in the CU Daily by commenting: 

• Were they that poorly compensated while they worked there??? Capital belongs to members! They brought their business to the cu…. Not the insiders!
• That is a rather interesting lump sum payment
•  This should NOT be happening. Hopefully the members will be smart enough to vote against the merger.
• I have time and time again stated to NCUA that this should be illegal practice.
• Where’s the dislike button?
• As I read the article it sounds like a pay now or pay later for (CEO) Mr. (Craig) Rhoden. Of course, a few details concerning his current contract are missing. But I personally don’t see any problem with the payouts. CEO Rhoden oversaw a tremendous amount of growth and earnings during his tenure. I’m sure net worth reflects that. Just the way I see and read it.
• The payouts for years of service are excessive, as there are plans in the market place available had the board so chosen to retain and secure these staff members during employment. Doing so for merger purposes is a payout, used in the banking world but shouldn’t be allowed in the credit union industry.
  Cash payments for non-competes clauses maybe, but again normally difficult to uphold in court.
  The capital belongs to the members, as they are the ones who lost out on higher savings rates and lower loan rates to build the business capital.
  The regulators will succumb to the larger credit union power and not protect the members, as is normal for them.

Response on Succession Planning

In response to a story that America’s Credit Unions wants to see an NCUA rule requiring succession plans be in place at credit unions:

• Eliminate succession planning and Supervisory Committee audits?
• We’re literally watching member money being used to advocate against the very guardrails designed to protect them—and the institutions they trust.
• At some point, someone has to throw a flag on the play.