APPLE VALLEY, Minn.—The CEO of a credit union whose members are currently voting on a merger will receive a $7 million payout if the deal is approved, while other executives will receive millions more, according to a new report.
Frank Weidner, CEO of Wings Financial Credit Union, is to receive the $7 million payout if members vote in favor of merging into Colorado-based Ent Credit Union, according to the Minneapolis/St. Paul Business Journal.
A review of the Wings Financial website’s page website’s page related to the merger by the CU Daily did not find any indication there would be any payout to the member-owners as a result of the merger. Instead, it is offering a $5,000 prize to those who cast votes (nonvoters are eligible to enter the contest).
Additional Payouts
According to the Business Journal, others who are to receive a merger-related bonus at Wings Financial include:
• Chief Administrative Officer Greg Higgins: Eligible for a retention bonus of three times his annual salary, along with a $175,000 one-time bonus.
• Chief Lending Officer Norm Creveling: Eligible for a retention bonus of three times his annual salary.
• Chief Experience Officer John Wagner: Will step down and receive a $1.4 million payment, which is two times his annual base salary plus incentives.
About the Merger
As the CU Daily reported earlier, in April the $10.3 billion Ent CU in Colorado Springs, Colo., which has approximately 577,000 members, and the $9.47 billion, Apple Valley, Minn.-based Wings Financial, which has approximately 377,000 members, announced plans to combine. The two CUs are approximately 1,000 miles apart.
If approved by members, the newly formed credit union will be led by Chad Graves, current president and CEO of Ent Credit Union, and will be called Wings Credit Union, with a Colorado state charter, the organizations said. Weidner’s position as president and CEO will be eliminated, and he will receive the $7 million payout and remain with the combined CU for one year in an advisory capacity at his current pay, according to the Business Journal.
The Financials
At midyear, Ent Credit Union reported $16.5 million in net income to go with net worth of 10.27%. Wings Financial reported $9.47 billion in assets with 377,000 members. Wings Financial CU reported $33.7 million in net income and had net worth of 11.85% as of the same date.
Sweepstakes for Voters
Member voting is open through Dec. 4, and Wings Financial is currently running a sweepstakes offering a $5,000, 12-month certificate to one member. All Wings members who cast a vote are eligible and will automatically be entered to win. A vote is not required to enter or win, the CU said on its website.
The sweepstakes promotion appears just above a headline that reads, “Vote to ‘Approve’ the Merger.”
“Voting ‘Approve’ will allow our combined organization to create even more value for our members, employees and communities,” according to text on the site.
In listing benefits from the merger, text reads, “As a member of a financial cooperative, how we operate on your behalf matters. Our goal is to provide products, services and benefits that wow you AND stay local to serve you and our communities. Growing via this merger will help us accomplish both!”
The credit union said the merger will lead to:
• Direct benefits. “We will deliver competitive rates, expanded locations and access to nationwide surcharge-free ATMs, better hours and more!”
• Community impact. “We will do even more to serve your communities. We will continue to focus on your financial well-being and understanding how we can provide high-impact, local support.”
• Scale. “As a member of our financial cooperative, you deserve great experiences. This merger will give us the scale and buying power to provide our members with best-in-class service and technologies—while continuing to ensure your financial safety and soundness.”
• Great employees. “Being a larger credit union allows us to maintain a strong team and take care of the people who take care of you!”
The site also says benefits of the merger will include a “top 10 credit union ranking,” nearly 1 million combined members, 91 combined branches and “2x-5x more surcharge-free ATMs than leading banks.” The 91 branches are spread across six states: Colorado, Florida, Georgia, Michigan, Minnesota and Wisconsin.
