Comments on: Fired…Hired…Then Retired: The $4 Million CEO Debacle

By: Jonathan Gowins

Jonathan Gowins — Fri, 10 Apr 2009 16:18:42 +0000

Greed. No industry or individual is protected against it. Sad.

By: SRG

SRG — Thu, 09 Apr 2009 14:36:53 +0000

Wow that’s pretty unbelievable, especially this part:

“Blakely, after getting a $3.6 million bonus himself, recently told employees were told they may have to forgo bonuses this year. To put an even sharper sting on this, there were plenty of Servus employees whose only bonus in 2008 was a $50 gift card.”

If I had been an employee when I heard that I might have punched him in the face. It goes to show that CUs aren’t immune to corruption, the bigger you get the harder everyone has to work to keep that in check.

By: Editor

Editor — Wed, 08 Apr 2009 13:47:49 +0000

I think transparency with CEO compensation would probably benefit the credit union industry. People sometimes lose sight of the fact that credit unions aren’t supposed to be run like corporations. It’s the members’ credit union, and the members’ money.

By: Ben Rogers

Ben Rogers — Tue, 07 Apr 2009 18:03:55 +0000

There's long been a regulatory and consumer advocate movement calling for CU disclosure of executive pay, especially because other 501(c)3's are required to disclose (check out CUNA and NAFCU's pay here if you're curious). CU execs have objected that it violates privacy, but that argument doesn't hold much water given that execs at publicly traded companies AND non-profits already disclose. I think it's only a matter of time in this environment.

By: Editor

Editor — Tue, 07 Apr 2009 17:30:11 +0000

Here’s another way to look at the Servus CEO’s $4 million package. He was hired back in 2007 as a merger consultant and was temporarily given the title of CEO.

By: Editor

Editor — Tue, 07 Apr 2009 17:26:07 +0000

@Denise – In the situation you’re referencing, there are two distinctions.

First, and most importantly, the CEO at PTCU/OnPoint had been working there for years. He could demonstrate real, tangible value in his performance; he oversaw some pretty phenomenal growth and healthy results.

Second, his compensation was annual, not a one-time bonus… although I’m not sure what difference this makes from the member’s point of view or from a branding perspective.

Besides the imploded merger between PTCU and Oregon Community, there wasn’t much else in the way of fallout. I’ll assume that has a lot to do with the fact that the CEO in that situation had more tenure, more of a case to make regarding his income.

By: Denise Wymore

Denise Wymore — Tue, 07 Apr 2009 15:29:19 +0000

This story reminds me of the Portland Teachers Credit Union article that hit the press back in 2003. Opened up a whole big slimy can of worms.

http://www.articlearchives.com/company-activities-management/company-structures-ownership/522973-1.html

This merger failed because of the CEO’s pay – and his reluctance to disclose it to members. Good times.

By: Nala

Nala — Mon, 06 Apr 2009 16:47:36 +0000

Ah, I so feel for the front line staff who are having to answer questions and take the heat from members.

By: Andy LaFlamme

Andy LaFlamme — Mon, 06 Apr 2009 16:20:48 +0000

Ouch…that’s a harsh pill to swallow for both members and employees of Servus. I’m not a huge fan of mergers in the first place, especially when the goal is, on the surface, simply to get bigger. I don’t know all the reasons for this gigantic 3-way merger…but, this event is going to put a sour taste in the mouths of not only Servus’s members, but the members of other credit unions going through a potential merger.

By: Morriss Partee

Morriss Partee — Mon, 06 Apr 2009 16:07:16 +0000

Alphonse Desjardins is turning over in his grave.