It’s up to members of Coast Capital Savings to decide whether they want to change the way its board of directors is compensated.
A task force assigned to reviewing the credit union’s director compensation packages made a series of recommendations in a report published February 12.
The report states directors must have the skills and expertise to carry out Coast Capital’s strategic plan and therefore “offer a level of remuneration that both reflects our co-operative heritage and makes us competitive in the market place.”
The report goes on to recommend making compensation “proportional to a peer group of Canadian financial services institutions of similar size and complexity.”
In 2007, members approved a compensation philosophy that stated, “Director compensation will be higher than that of similar-sized co-operatives, and lower than that of similar-sized public companies.”
It’s unclear whether compensation for the board would go up or down under the newly proposed plan compared with the 2007 philosophy.
Coast Capital’s 500,000 members begin voting next month on whether or not to accept the recommendations.
If the new philosophy is approved, the credit union will get to work on analyzing what this means for remuneration levels going forward.
