WASHINGTON—CEOs of federally insured state chartered credit unions with at least $1 billion in assets earned on average almost 13.15 times more than their average employee compensation in 2015, according to a new report.
The median executive compensation to average employee compensation ratio was 10.19, shared Keith Leggett, the former senior vice president and senior economist at the ABA, on his Credit Union Watch blog.
Leggett said the data was pulled from Schedule J of a credit union's Form 990.
To calculate average credit union employee compensation, the analysis divided the Call Report line item Employee Compensation & Benefits by full-time equivalent employees. Full-time equivalent employees equal the number of full-time employees plus (0.5 times the number of part-time employees),” Leggett explained.
Leggett said the data shows there is a positive relationship between CEO compensation and the ratio of CEO compensation to average employee compensation.
The credit union with the highest multiple of CEO compensation to average employee pay in 2015 was San Diego County Credit Union.
“Teresa Halleck, CEO of the credit union, earned 71.93 times the average compensation of San Diego County Credit Union's employee,” Leggett said.
Rounding out the top three, according to Leggett:
- Schools Financial CU, Sacramento, Calif., where CEO James Jordan earned 70.93 times the average compensation of a San Diego County Credit Union employee
- Virginia CU, Richmond, Va., where CEO Christopher Shockley earned 49.90 times the average compensation of a Virginia CU employee