500% Pay Hike Riles Members – Special Resolution Vote Begins March 22nd
For the first time in the 60 year history of Coast Capital Savings, credit union members are forcing a vote to oppose a policy supported by the Directors. The issue is the right of Directors to set their own compensation without reference to the members; a right the members now want rescinded.
In 2007, credit union members approved a resolution allowing the Directors to determine their own remuneration without the approval of the members. Since then, the remuneration of the Chairman of the Board has increased from $33,000 in 2007 to $164,140 in 2011. The members point out that Vancity, a larger credit union operating in the same marketplace, paid their Chairman $60,700 in 2011; a difference of over $100,000 a year.
Dissident credit union members state the remuneration their Board is paying to itself is far in excess of any cooperative association in Canada. They claim other BC credit unions pay their directors much less, pointing to the example of Vancity where the Board was paid $366,382 in 2011 while Coast Capital’s Directors collected $750,517. The dissidents state that on several occasions they have requested the Board justify their compensation by providing an example of even one cooperative with a similar level of Director Compensation but have not received a reply.
The members leading the opposition to the Director’s Compensation believe the situation is so far out of line that a fiduciary issue is a possibility and they have asked the provincial regulator, The Financial Institutions Commission, to review the matter on behalf of the credit union membership.
http://coastcapitalcompensationwatch.com a website set up to bring the matter to the attention of Coast Capital members and employees, was successful in obtaining more than 400 signatures in support of a petition which has forced the Directors to allow a vote on the matter. The vote scheduled from March 22nd to April 16th will take place concurrently with the annual Election of Directors. The results will be announced at the Annual General Meeting to be held on April 30, in Richmond, location to be announced.
EVERY DOLLAR PAID FOR DIRECTOR REMUNERATION IS A DOLLAR NOT AVAILABLE FOR EMPLOYEE SALARIES OR MEMBER SERVICES
If you would like more information about this matter please contact Phil Embley at 604.531.9070
For a PDF version of this press release, click here.