✅ Faye Nahbani, soon to be former CEO of SAFE Credit Union one way or the other, authored the letter to SAFE members strongly supporting the merger and asking member support. (See the full text of her letter: [here!])
✔ As the disclosures in her letter reveal in #'s 2, 3, 4 below, Ms. Nahbani will benefit by at least $4,358,000 from the merger. Lots of folks will probably "get exercised" about a $4.3 million payout by their folksy, community-minded, non-profit, cooperative.
Maybe they should or, of course, it could also just be envy and jealousy - y'know that human nature thing!
- "Ms. Nabhani’s SERP and change-in-control agreement were established prior to, and independent of, the proposed merger. Because BECU does not offer an equivalent program, Ms. Nabhani’s existing agreements will be terminated, and its value will be paid out as a retention agreement tied to continued employment through the post-merger transition period."
- "For the SERP portion of the agreement, Ms. Nabhani will be eligible for three separate post-close payments up to $1,075,000 each (totaling up to $3,225,000)."
- "For the Retention portion of the agreement, Ms. Nabhani will be eligible for three separate post-close payments up to$361,000 each (totaling up to $1,083,000)."
- "A one-time $50,000 bonus, as described above."
- "Separately, upon closing of the proposed merger, Ms. Nabhani has agreed closer to be employed by the Continuing Credit Union in the position of Market President for the Greater Sacramento Region. Upon employment by BECU after closing, Ms. Nabhani’s total future annual compensation, including base salary, incentive opportunities, and employer retirement contributions, is expected to decrease by approximately $504,710."
✔ But while you recover from that fit of jealousy and envy, please consider two other points.
- First, regardless of what the Board and Ms. Nahbani claim about everything remaining the same ("We can build on all that SAFE has stood for over the past 85 years."); there will be a change-in-control at SAFE [see #1] - no if's, and's, or but's. SAFE will no longer belong to the Sacramento community - period!
- Second, in reading #5, you might get the impression that Ms. Nahbani is making a huge sacrifice in this merger with her compensation decreasing by @ $504,710! Trick question: "What is her new, "low" compensation?" (According to IRS filings @$750,000 annually!)
😎 So. if Ms. Nahbani stays 1 year, she will take home over $5+million, 3 years over $6.5+ million, 5 years over $8+ million.... "As a member-owned credit union, everything we do is guided by one simple commitment: doing what is best for you."
😎 Folks are increasingly unhappy with all this. You might want to check out the discussion on Reddit here: https://www.reddit.com/u/
"People Helping People"... some perhaps more than others?
