Here ya' answers busta! Happy now? - D. Duck
Well no, not really, but time to finish up the Q&A "monologue discussion" with our CEO from the 2026 Annual Membership Meeting. The video of the meeting and answers to pre-submitted member questions have been posted [look for the "PDF" click] .
Had noted in prior posts to look especially for answers on three key issues: the suspect "no bylaw amendment amendments" of 2025, the 300,000 member signature petition now required for simple resolutions for the board, and the imposition of diminished privacy protections on the membership. The "answers" appear inadequate , but Ms. Brady did her best.
✅ As SECU members, after 5 years of "new/new" cooperative, democratic leadership; we are left with the following improvements:
Year Member May Speak Member Resolutions Q&A
2022 Fully Permitted Fully Permitted Yes
2023 Restricted Restricted Yes
2024 Prohibited Restricted Yes
2025 Prohibited Prohibited Yes
2026 Prohibited Prohibited 30 min.
✔ Can't wait for 2027! What will they tink of next?
✔ On a more positive note, to clarify that answer about that $26.5 million loan to Ms. Brady [see #35 - PDF]. That benefit is in addition to, on top of the already existing CEO "SERP" benefit, so it does not "lower costs" as implied.
😎 And, that CEO "multi-million dollar benefit loan program" has been provided to only two, not "several", SECU CEOs - Mr. Hayes & Ms. Brady. Will have to admit that if Mr. Hayes was worth $6.5 million, then Ms. Brady is worth more, but ....
Wow, got jumped pretty quickly on this one!
ReplyDeleteCommenter: "You might read the answer a little closer. The SERPS have been provided to several CEO’s not the loan. You’re misinterpreting it and misrepresenting it. On purpose? I mean, the language couldn’t be more clear."
**** I apologize if I misread Ms. Brady's official answer to the question, but perhaps some additional clarity would help all members understand this "$26.5 million loan benefit" . After all, that's why the question was asked.!
Commenter: “While SECU has funded supplemental executive retirement plans for its last several CEOs, the split-dollar life insurance option allows SECU to offer a similar benefit at a lower cost to members than supplemental executive retirement plans funded with cash payments.”
**** The SECU IRS report (Form 990) indicates that. "The credit union has granted non-recourse loans for ("split dollar") life insurance premium payments to select members of senior management."
Is the post error in not understanding that all SECU SERPs have now been replaced by split dollar loans? The IRS notes that these loans have been issued to more execs than just Ms. Brady - you hadn't mentioned that!
Q#1: If true that there are multiple loans, how many SECU execs have received this benefit?
Q#2: What is the @total $$$ amount of these loans (to the nearest $million) granted by the Board?.
Q#3: You state the cost to the CU of split dollar loans is "at a lower cost to members". What is the aggregate annual cost of these loans to members?
Q#4: Have the benefits of prior SERPs, if now replaced, been ended or do they continue into the future? Don't execs in fact have both?
Wouldn't just providing an explanation and straight answer to members from the get go have been a better way to go? Wasn't that the purpose of the annual meeting?
Members are smart, they'll understand why these benefits are fair and reasonable... just as the SECU Board did.
Look forward to the answers! Thank you.
And BTW, the IRS 990 indicates SECU reported the following: "The credit union has a SERP plan for key executives ." Just sayin'!
Delete[page 25] https://app.candid.org/profile/7856198/state-employees-credit-union-56-0475645?activeTab=7
Salaries make you gasp when you know how hard it is to justify a raise in the branch.
Delete3:57 Fair point and if you look at prior posts you!d see data on how SECU pay per employee is way behind national and local credit unions (and not just by a little.. a lot)
DeleteSo you're over-complicating this. No, other execs don't have split dollar plans. If they did, they would be disclosed on the 990! It's required. Yes, it says execs have serps. That doesn't mean the CEO does. new plan in 2025, just like the 990. This isn't complicated.
DeleteIn terms of the cost of the plan compared to SERP. No member has the right, or for that matter, the need to know that. If the point is to simply challenge every statement or comment they make, then you need only use your common sense. You don't need the aggregate cost. You should know how SERPS work, and where the funding comes from. The CU pays cost to administer the plan (like any other plan), but they fund the whole benefit.
Delete@ 3:57 never had a COLA raise following double-digit inflation post-Covid; promotions repeatedly frozen; merits halved in two of the last six years; benefits scaling back; career path stripped down with fewer opportunities for advancement; etc., etc.
DeleteAt this point, the annual-ish $1,000 bonuses are getting insulting. I have a child in daycare and a mortgage. A one-time $500 bonus after taxes does not help me. I need my salary to increase.
I am once again asking the SECU executives that I know read this blog: when are you going to Do The Right Thing for your employees?
@8:40 it is really disheartening to see the top 5-10 salaries and know each of them works within a structure of Associate EVPs, EVPs, SVPs and C’s - so the cost to SECU for high-level titles really does not appear to match the amount work and leadership necessary. Very top-heavy.
Delete8:18 I agree SECU is getting top-heavy. But honestly, that's not even a real roadblock at this point. We ostensibly have the means to raise salaries for staff. We are incredibly financially sound, we are over requires in almost every metric there, and after paying all expenses (including salaries) last year we still doubled our net income. There just is not an argument for the position that we could not afford a modest salary increase for staff. They just choose not to because, frankly, they don't have to. They can retain mid-level talent and they don't seem to care about top talent leaving. Not a sustainable business model if you ask me, but hey, I'm not part of the c-suite so no one did.
Deleteas long as the executives are taken care of is all that really matters at SECU ... just charge the loser members another extra 1/2 percent for their loan ... except those whose mommy can co-sign for them ...
ReplyDeleteThere is nothing beyond the 990 that members have a right or need to know. Period.
ReplyDeleteNo, other execs don't have split dollar plans. If they did, they would be disclosed on the 990! It's required. Yes, it says execs have serps. That doesn't mean the CEO does. new plan in 2025, just like the 990. This isn't complicated.
ReplyDelete9:55 Couldn't really follow what you said. Sounds like really cheap AI response.
DeleteSo does LB have both a SERP and a new $26.5 million loan or not?
And from what you're saying the Board voted to keep paying for the higher cost SERPs for other execs rather than switch them to lower cost split dollar program?
DeleteWhy pay less for LB and continue paying more for other execs?
Are you saying the Board doesn't know what it is doing? Paying more than necessary...
No, other execs don't have split dollar plans. If they did, they would be disclosed on the 990! It's required. Yes, it says execs have serps. That doesn't mean the CEO does. new plan in 2025, just like the 990. This isn't complicated.
Delete10:05 pm Again, please upgrade to a competent AI!
Delete"New plan in 2025, just like 990." What does that mean?
10:08 you’re making facts up here, figure it out.
DeleteNew/new rules. We’re not going back to the 1950’s. Deal with it. Meanwhile, you’re welcome. Once the new core is in, it’ll be the first tech advancement in 40+ years, and the clean up of the old/old mess will be done at that point.
ReplyDeleteSo disrespectful (9:28 am). Some days, I just cannot bear the hate-filled, anonymous attacks on this site (by trolls). Accomplishments are affected by many factors. The former credit union leadership and accomplishments should not be disparaged. Be respectful of the old as well as the new. We would not be where we are today if not for the yesterdays. In carrying forward to tomorrow, don’t lose the mission to serve others especially those in need. - c
Deleteahhhh the new core, the savior of the CU ....
ReplyDelete