Report
355
Number
Apr 20 2015

Should Credit Unions Pay Their Directors?

For credit union board directors, pay is never the primary motivator. This report sheds light on the current state of credit union director compensation and considerations you should keep in mind when exploring the prospects of paying board directors. 

Matt Fullbrook
Matt Fullbrook
Manager, Clarkson Centre for Board Effectiveness, Rotman School of Management, University of Toronto
Report Number 355

Executive Summary

$4,245: The price of a well-used Honda Civic or the average amount collected by a paid credit union director?

Some credit union directors are not technically volunteers. At 145 credit unions in 12 states, directors earn somewhere between $60 and $37,597 annually. Federal credit unions are allowed to compensate a single board officer, but are expressly forbidden from paying other directors. Otherwise states are free to write their own rules. Tennessee and Washington recently joined 10 other states that have long allowed compensation in various forms. In most cases, credit union director compensation is dwarfed by fees paid to directors of commercial banks, but the pay trend is slowly catching on, especially among large credit unions.