WASHINGTON—In 2018, CEOs at state-chartered credit unions with at least $1 billion in assets earned on average 12.5 times the average compensation of their employees.
The median ratio of CEO compensation to average credit union employee compensation was 10.99, according to an analysis by Keith Leggett, the former senior vice president and senior economist at the ABA, and published on his blog.
To calculate average credit union employee compensation, Leggett’s analysis divided the Call Report line item Employee Compensation & Benefits by Full Time Equivalent Employees. Full Time Equivalent Employees = The Number of Full Time Employees + (0.5 times the Number of Part Time Employees), Leggett explained.
According to Leggett, the following table lists the 10 credit unions with the highest ratio of CEO compensation to average employee compensation. Elizabeth Dooley of Educational Employees Credit Union in Fresno, Calif., had the highest ratio of CEO compensation to average employee compensation at 41.28, stated Leggett.
“However, this data should not be used to compare the compensation of bank CEOs to their employees. The information reported by publicly-traded banks uses median employee pay, while this analysis substitutes average employee compensation for median compensation, because median compensation is not available,” Leggett said. “Median employee compensation would be lower than average employee compensation. In other words, if median compensation was used, the ratio of CEO compensation to median employee compensation would be higher.”