Trust... but verify!
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✅ Member Q&A Submitted In Advance: "Would you please explain the 26.5 million dollar, non recourse loan granted to CEO Leigh Brady by the board, which was reported to the IRS."
✔ Our CEO Leigh Brady didn't answer the question, but promised to answer all submitted SECU member questions (70!) by the end of October.
North Carolina's premier business news source decided not to wait and started digging for answers... [link].
Halloween is October 31st... Trick or Treat?
Where do I apply for a split dollar loan? Couldn't find it online. As a member how do I qualify? what is the rate
ReplyDeleteMore than a year ago, the State Employees’ Credit Union loaned its president, Leigh Brady, $26.5 million to buy what’s called split-dollar life insurance coverage as an executive benefit.
ReplyDelete'Executive benefit' .... why aren't we special ....
Could someone explain in layman’s terms exactly how this type of benefit works? How much does she actually receive in dollars , how much it costs SECU , payback arrangement, whatever???
ReplyDelete1). We lend her money to buy an insurance policies
Delete2) loan is secured by the policy, which effectively means we’re the beneficiaries and we get paid when she dies
3) the CEO can get pre-death cash benefit, usually either by taking the accumulated cash benefit of the policy and / or borrowing against it.
4) this is why split dollars are considered exec benefits like SERP programs, but they are far better tax treatment for execs and less costly for the cu.
5) hard to know without seeing the plan how much she gets or what it will cost, but think in terms of the cash value that can accumulate.. even the policy earns 4% a year - which is well below a t-bill right now, that’s almost 3 million accumulated in 3 years.. so it can derive significant value for execs.
6 ). No way to know how much she’ll get without seeing the plan, but this is going to be worth several million dollars to her (I guess 5-7 million), which is on par with a SERP
Which insurance company are we paying off? How much was the commission paid on the policy sale?
ReplyDeleteWho got the commission on the sale? Who's the SECU insider friend or relative of the insurance agent ?
Keep digging.
What commission $$$ paid up front?
ReplyDeleteWhy does it matter? People that sell things get commissions. So what?
DeleteNo problem, who and how much?
DeleteGet a grip. It’s not some Board member’s brother. More importantly, you have no right whatsoever to know that information.
DeleteCome on girl fess it!
ReplyDelete