Coast Capital is a Credit Union not a bank. Its supposed to be better.

Earlier this year, our Special Resolution for Members to establish Coast Capital Director’s pay passed with a record 79.7% of members who voted, voting for our special resolution. Members sent directors a clear message that it is not appropriate that Directors set their own pay levels. Since Directors were permitted to set their own pay in 2007, they raised their own remuneration by almost 500% in some cases. That is not right.
Let's Take Back Our Credit Union

Print and sign our Special Resolution #1 and we will put a stop to excessive director pay at Coast Capital once and for all. It’s your Credit Union, and its your money. Help fix this today by printing and signing our 4 petitions here!

Members sent the Directors a clear message that members should set their pay level. So what did Directors do? Very little! They cut their meeting fees from $1020 per “meeting” by $20 to an even $1000. Directors still get paid much more than Directors at any other BC Credit Union including Vancity which is much larger and more profitable than Coast Capital.

Directors did established a Task Force on Director Pay but this task force has no power to actually set Director pay. The Directors still get to set their own pay to whatever Directors themselves approve. The Task Force’s mandate is to set a Philosophy, which Directors are allowed to ignore. This is not right. This is not want members demanded. With only 10 Directors, we do not need a new Philosophy, we need to set concrete, firm, and reasonable pay levels. Directors work 5 hours per week on average, do they really deserve to be paid over $150k for this job?

We have a plan to fix this. We have created a new resolution to set a firm and reasonable pay level for all directors. No more $1000 for phoning into a meeting. We asked members, and they agreed that Coast Capital Directors should not get paid more than double what VanCity directors get paid.

Print and sign our Special Resolution #1 and we will put a stop to excessive director pay at Coast Capital once and for all. It’s your Credit Union, and its your money. Help fix this today by printing and signing our 4 petitions here!

The Task Force on Director Remuneration is Described as Independent – But is it? You Decide.

After our successful Special Resolution on having members establish Director Pay, the board created a Task Force on Director Remuneration. But does this Task Force have the ability to set pay levels for Directors? No, that power still rests with the Directors.

The mandate of the Task Force specifically prohibits the Task Force from establishing Director pay, dealing with meeting fees, etc.  Whatever the Task Force recommends, the Directors will have the final say but they will be able to spin it as coming from an independent committee.

That’s not right. We can fix this. Sign our Petitions today!

One would expect that the Directors would recognize the obvious – that when you are in a conflict of interest and it is being scrutinized, you need to step back completely so it is beyond doubt you are NOT influencing, or appearing to influence the outcome.

Whatever the Task Force findings, and this in no reflection on the individual members who are to be commended for volunteering their time on this Task Force, the findings will be tarnished for these reasons:

  1. The facilitator, Delaney & Associates, was found and selected by the Board of Directors rather than by an independent third party.
  2. Coast Capital members that submitted applications volunteering to be on the Task Force were asked this totally inappropriate question while undergoing telephone interviews : “Did you vote on the Special Resolution last election?”   That question could have only one purpose.
  3. The mandate for the Task Force was determined by the Directors, not an independent party.  The decision to have the Task force focus on “philosophy” rather than the amount of pay, shifted the purpose.  Rather than establishing what amount Coast Capital Directors should be paid (79.7% of voters were in favour last election), the Task Force members have been limited to tinkering with the much hated Remuneration Philosophy statement.  There is no need for a Remuneration Philosophy for only 10 Directors.
  4. In another stipulation set by the Directors (the group with the conflict) the Task Force has been made toothless.  The mandate specifically prohibits the Task Force from establishing Director pay, dealing with meeting fees, etc.  Whatever the Task Force recommends, the Directors will have the final say but they will be able to spin it as coming from an independent committee.
  5.  If that isn’t enough, the Directors are holding and attending meetings which are dealing with the issue of their pay and members get the bill.  The more Directors can drag this out, the better — for them, financially. They get paid $1000 for every Task Force meeting that they attend.
  6. The Demographics of the task force is wrong. 51% of Coast Capital members are male; 49% are female.  Six of eight members of the Task Force were (you guessed it) male.
  7. Coast’s future – members 35 & under – are unrepresented.

Do you accept this is how the Directors should have tried to resolve this mess?
We don’t think it is.  Please sign our petitions and pass the word around.

Please sign these 4 resolutions for 2014!

With 300 signatures, Coast Capital must let all members vote on these resolutions in March 2014. Help restore Coast Capital to its pre-2007 days when it acted more like a true credit union. Sign our Special Resolutions today!

#1 – establishes a specific pay level for each Board position
#2 – requires disclosure of the compensation paid to the 3 top executives
#3 – sets a 12 year term limit for Directors
#4 – reforms the election process

View and print all four resolutions together by clicking here.
(Or you can use this version which can be filled in before printing)

Note: the original forms had an incorrect fax number. This has now been corrected.

Please print these resolutions, sign, and send back to us. Instructions for sending CompensationWatch the completed forms are at the bottom of each Special Resolution petition form. You can send them to us through regular mail to our P.O. Box, send it to us via fax, or email us an image of your signed form. Do it today! We can fix this.

A letter by Phil on why Coast Capital Members need to sign these petitions so we can all vote on these new Special Resolutions …

Dear Fellow Member,

Thank you! Last year you supported our campaign by signing a petition which forced a vote on the excessive compensation the Directors of Coast Capital Savings Credit Union paid to themselves.  As you probably know, in the largest vote in the history of Coast Capital, 79.7% of voters were in favour of members establishing the amount we would pay the Directors.

Rather than comply, the Directors hired a lawyer and found a loophole.  Then they cut their pay by a small amount and announced the formation of a Task Force to study the matter.  But the Task Force, which has yet to meet, is prohibited from setting specific director pay!  Basically, the Task Force has no real power – that remains with the Directors.

A group of outraged members have concluded that enough is enough and we are attempting to force another vote but this time there will be no loophole.  In addition, taking into account the lack of democracy and transparency at Coast Capital’s Board, we have decided to use this opportunity to ask for a vote on other governance matters that the Directors won’t address as it is not in their personal interest to do so.

We need your signature(s) to bring about these much needed changes. These changes aren’t radical – they will basically bring Coast Capital in line with the rules and best practices in effect at most other credit unions and co-operatives. For example, the proposed rule on term limits for Directors is cited by BC’s Financial Institutions Commission as a recommended good governance measure.

The new Director Remuneration Resolution is very specific; it sets a very fair level of pay for every position on the Board and incorporates a cost of living adjustment for future years. The pay is comparable to what Vancity (a larger credit union) pays their Directors.

IF 300 PLUS MEMBERS SIGN OUR PETITIONS, WE WILL ALL HAVE AN OPPORTUNITY TO EXPRESS OUR OPINION. Signing the petition does not in itself change anything but it will allow all members to vote.

The resolutions are listed below…

Click on the individual special resolutions for 2014 for details:
#1 – establishes a specific pay level for each Board position
#2 – requires disclosure of the compensation paid to the 3 top executives
#3 – sets a 12 year term limit for Directors
#4 – reforms the election process

View and print all four resolutions together by clicking here.

Visit our Resolutions for 2014 page to view the forms or share the link with your friends.

We appreciated your support last year, and need your signature again this year.  If family or friends are Coast Capital members, please tell them about our campaign.  You can make copies of the resolutions for them to sign.  We need at least 300 member signatures!  Please sign and return the forms right away.  Thanks…

Sincerely,

Phil Embley
compensationwatch@gmail.com

Let’s Restore Coast Capital Savings to its Credit Union Roots

We are trying to restore Coast Capital to its pre-2007 days when it acted more like a true credit union. Other Credit Unions look to Coast Capital as the model. Help us restore the principles of a Credit Union to Coast Capital, and together we will fix it, and all the others too.

Coast Capital has lost its roots as a Credit Union, but we can fit it. With help from members like you. Stay tuned and get ready to vote at the AGM.