CEO Salaries to Increase 4.5% in 2016
CUs anticipate offering their CEOs just under a 4.5% pay raise, on average, in 2016
CEOs at credit unions with at least $100 million in assets will earn a median salary of $207,000 this year, according to CUNA’s 2015-2016 Total Compensation Report, CEO.
That figure roughly matches the 2014 median of $208,718.
CEOs’ median total cash compensation of $226,000—which includes base salary and variable pay—is similar to last year’s amount, as well.
Credit unions anticipate offering their CEOs just under a 4.5% pay raise, on average, in 2016.
CEOs received a noticeable bump in benefits, as credit unions spent a median $9,883 on them by yearend 2014, up roughly $2,000 from the previous year. Up to 90% of credit unions offer benefits, such as health, life, vision, and/or dental insurance.
Many factors impact CEO base salaries, most notably a credit union’s asset size. The median base salary for CEOs in credit unions with assets of $100 million to $200 million is $149,937. At credit unions with assets of $3 billion or more, the median base salary stands at $531,467.
About 15% of CEOs received increases of less than 3% in 2015, including some whose salaries remained static. About 30% of credit unions granted their CEOs raises of 7% or more.
Nearly 75% of credit unions reward their CEOs with variable pay, at a median amount of $18,500. That includes bonuses (after-the-fact rewards for a job well done) and/or incentives, which executives earned based on achieving preset performance criteria.
Incentives are more common, with 52% of credit unions awarding their CEOs a median of $12,500—equating to 6% of their base salary. Only 34% of CEOs earned incentives, for a median amount of $33,878, equivalent to 13% of their base salary.
For more information about CUNA’s 2015-2016 Total Compensation Report, CEO, visit cuna.org/compensation.