Quiz: The Compensation Price Is Right

This is bonus from “Steady Gains” in the August 2017 issue.

How well are you tuned into trends regarding salary, incentive pay and other compensation issues for credit union executives? Take this quiz based on results of the 2017 CUES Executive Compensation Survey to find out:

1. How many CEOs have 21 or more years of experience in the financial services industry?

1. 51.8 percent
2. 67.3 percent
3. 79.7 percent +

2. One in ____ CEOs of participating credit unions has earned the CCE designation.

1. Three
2. Five +
3. Ten

3. What is the most common eligible executive benefit offered to CEOs?

1. Credit union-owned car
2. Long-term care insurance
3. Supplemental life insurance +

4. Other than the CEO, which executive position receives the highest total median compensation?

1. Executive vice president
2. Senior CUSO executive
3. Chief operating officer +

5. The variable with the greatest impact on overall compensation levels for credit union executives is:

1. Years of experience in financial services
2. Credit union asset size +
3. Master’s degree/MBA

6. The most commonly cited factor in determining CEO bonus pay is earnings. The least reported is:

1. Regulatory compliance +
2. Loan/share ratio
3. Membership growth

7. The executive positions most likely to be eligible for bonuses among survey respondents were:

1. CEO and EVP
2. Marketing and mortgage lending executives
3. Legal counsel and senior CUSO executives +

8. The member of the executive team most likely to be a relative newcomer to the financial services industry is the:

1. Marketing executive
2. Legal counsel executive +
3. Compliance officer

9. Next to the CEO, the executive most likely to have earned the CCE designation is the:

1. CFO
2. EVP +
3. HR executive

10. Next to the CEO, the executive likely to have the most extensive experience in financial services is the:

1. CFO
2. EVP
3. Chief Operations Officer  +

Answers:

1- 3

2- 2 (19.9% of CEOs have the CCE designation)

3- 3 (40.3% of CEOs receive supplemental life insurance)

4- 3 (total median compensation for COOs in 2017 is $217,800, compared to $266,116 for CEOs, $209,419 for EVPs and $188,735 for senior CUSO execs)

5- 2 (according to statistical modeling of survey data by Industry Insights)

6- 1 (only 4.2% of respondents listed compliance as a factor in incentive pay)

7- 3 (94.1% of CUSO execs and 95.7% of legal counsel execs are eligible for bonus pay, which may be because these positions are typically found only in the largest credit unions)

8- 2 (45.5% of legal counsel executives have 10 or fewer years of experience in financial services, compared to 32.4% of compliance officers and 28.9% of marketing execs)

9- 2 (15.5% of EVPs have the CCE designation)

10- 3 (65.1% of chief operations officers have 21 or more years of FI experience, compared to 61.7% of EVPs and 47.4% of CFOs) 

Karen Bankston owns Precision Prose, Portland, Ore.