The regulatory change you mention re: allowing for director compensation applies to state chartered Ohio credit unions and came about due to the excellent work of the Ohio League's advocacy team. There are also a handful of other states that allow their state chartered CUs to compensate directors. Our board expressed interest in this, so we have amended our Code of Regulations several months ago. To move forward, we will certainly incorporate this issue into a much broader dialogue regarding overall governance. There is merit in discussing whether the directors of a financial institution, albeit cooperatively owned, should be compensated for undertaking those responsibilities. As part of the larger discussion, a Board should carefully evaluate governance aspects such as recruitment and retention of qualified officials, evaluation of the governing board as a whole, evaluation of individual directors, term limits, how to structure compensation (eg per meeting, table officers to receive more than other directors, etc.), identification of specific skill sets sought by the CU, identification of current gaps in the skill set or demographic makeup of directors, etc.
An interesting observation that came out of our preliminary discussions is the general reluctance on the part of our incumbent directors to vote themselves compensation. If the board decides to move forward with this we will likely retain a compensation consultant to guide us through the process. Hope this helps.
William J. Burke
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