Round two is coming up in the ongoing issue over how much Coast Capital Savings board members deserve in compensation.
Voting packages are being mailed out to allow the credit union's 512,000 members decide if they want new flat rates for directors or if they prefer a proposed new compensation formula that would determine the amount.
Members can vote between today and April 8, with results revealed at the April 30 annual general meeting.
The Coast Capital Compensation Watch group is renewing its call from last year for board members' compensation to be lowered significantly, to end up slightly higher than what VanCity credit union directors are paid.
Coast Capital, Canada's second-largest credit union after VanCity, spent a total of $720,529 to compensate directors in the 2012 calendar year. VanCity total directors' compensation for 2012-2013 was lower, at $394,439, according to its website.
At Coast Capital, board chairman Bill Wellburn received $157,080 in 2012. Last year's numbers are not yet available.
Wellburn earns a base rate of $65,000, with attendance at credit union committee meetings pushing up the total.
VanCity's chairwoman received $62,239 in 2012-2013. That rate rises to $67,534 for 2013-2014.
Last year, Coast Capital members voted in favour of a Compensation Watch proposal aimed at reducing board payment levels. The credit union struck a task force, consisting of members and assisted by a consulting company, to examine Coast Capital's existing director compensation formula and determine if changes were needed.
In addition, the board carried out a separate review, a practice done every three years, on director remuneration, which led to lower rates for board members.
But those cuts did not go far enough to satisfy Compensation Watch spokesman Phil Embley.
Embley's group recommends setting the rate for the board chairman at $68,884, with no added fees for attending additional Coast Capital committee meetings. Ordinary directors would receive $40,114, while a committee chairperson would get $48,261, under the proposal going to members.
This proposal would save about $350,000 annually, Embley said.
The task force's recommendation does not set specific rates of pay. Rather, it recommends revising the existing director compensation philosophy. Currently, the philosophy states that "directors should be paid higher than the top 25% of Canadian co-operatives, but lower than the bottom 25% of TSX comparable companies."
Under the task force's proposal, the new philosophy would result in "compensation proportional to a peer group of Canadian financial services institutions of similar size and complexity, including credit unions, trust companies, banks and insurance companies." No specific amounts were stated.
The board is not taking a position on the task force proposal, Wellburn said, noting it is important that it stays fairly distant from the process. The task force was driven by members and was independent.
He did say, however, that the task force "came up with a thoughtful way of moving forward."
The board will respect members' wishes, Wellburn said.
Total assets under Coast Capital's administration rose by 1.7% to $14.6 billion in 2012, the credit union reported.
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