Pay for the board of Directors at Coast Capital has skyrocketed by as much as 500% in 5 years since 2007 when Members lost control over Director pay increases. This is wrong and you can help fix it if you are a Member of Coast Capital Savings Credit Union.
Our special resolution for returning control of Board of Director pay back to the members has gone to a vote! We thank all those members who voted FOR our special resolution to restore member control over Board of Director pay.
The voting period was from March 22 to April 16, 2013 and the results will be announced at the Coast Capital AGM on April 30. The AGM will start at 5pm and the Executive Plaze Airport Hotel in Richmond. A special resolution booklet with voting information was mailed to all eligible voting members on March 21 along with two Paper ballots that were sent to all eligible voting members. Voting packages and voting boxes were also available in local Coast Capital branches. Online banking members also had the option to cast their ballot through the Coast Capital Savings website.
Check our News page for details and next steps!
In 2006 Coast Capital Savings changed the Credit Union Rules to permit Directors to set their own remuneration within a policy framework that is not working out and should be changed. We achieved our initial goal of getting at least 300 members to sign a petition to require the Board of Directors to allow members to vote on a Special Resolution returning control of Board Remuneration back to the members. Click here to view the petition.
Did your pay increase by 500% in the last 5 years?
In 2006 the Chairman of the Board was paid $33,000. Last year the Chairman collected $164,140, a 500% increase during a time of economic restraint. During the same five years, total Board Remuneration increased by 375%.
Can you double dip on your job?
Payments that have been made to the Directors are within the approved policy but the manner of administering the policy is benefiting the Directors to an extent that was not anticipated in 2006. An example is that Directors are paid $1020.00 for each meeting and are able to collect for more than one meeting the same day. That is not only unusual but also unreasonable. We have been denied a calendar of all the 2011 meetings that resulted in a Director payment even though such a calendar is prepared yearly. Members have the right to know how often Directors are paid multiple times for the same days work.
Can you be paid if you phone into work?
Directors are paid if they phone in to a meeting – $1020.00. In an emergency situation phoning in to establish a quorum is reasonable but otherwise this should not be permitted. We have requested a log of phone attendance but Coast Capital has refused to provide the information. Coast Capital takes the position that phoning in for a meeting is just as good as attending. We believe members expect the Board of Directors will actually be present at meetings.
Here Is More To Consider
In 2011, Vancity’s Chairman of the Board was paid $60,700. Coast Capital’s Chairman is collecting 250% more. Vancity is a larger credit union and consistently provides excellent member service as does Coast Capital.
Coast Capital’s Chairman sits on every Board Committee which is authorized in a policy adopted under the current Chairman. It is very unusual for a Board Chairman to sit on every committee; in fact it is discouraged by good governance practices. It does allow the Chairman to collect $1020.00 for every meeting.
Directors provide advice and oversight; it is not a full time job. In a 2010 survey of Fortune 500 Company Directors, the Directors reported spending an average of 4 to 4.5 hours a week on their duties. The employees do the work.
We need your support. We acheived and exceeded our goal of getting 300 petitions each signed by one adult credit union member. We recieved 438 signed petitions in total. Thank you to all those Members who sent in their petitions! Together we can fix this!
Now Coast Capital Savings has until February 19th to respond to our petition for a special resolution on Board of Director compensation. Get ready to vote on our special resolution on restoring control of Director Remuneration to Coast Capital Members. We expect it to be announced as part of the package notifying members of the AGM and Director Election process in the next couple of months. If you know other Coast Capital members please tell them about our website and ask them to vote on this special resolution when it comes in the mail.