The NCUA board of directors held its fourth open meeting of 2019 yesterday and agreed to solicit comments on whether the agency should change rules that limit credit unions from connecting an employee’s compensation to loans to members and lines of credit.
The board discussed being interested in obtaining commenter feedback on how it can provide more flexibility with respect to senior executive compensation plans that incorporate lending as part of a broad and balanced set of organizational goals and performance measures, the agency stated.
The meeting was the first since Rodney Hood was appointed board chairman and Todd Harper appointed as a member of the board. Former Chairman J. Mark McWatters is the third member on the board.
Hood said his priorities as chairman will be to modernize the federal credit union charter, address the issues of capital reform and cybersecurity, create opportunities to serve underserved communities and relieve regulatory burdens that credit unions face.
Harper said that he is the first NCUA staff member to be nominated for the board. He discussed possible changes to the compensation rule, and stated that he was disappointed that financial regulators have not addressed the issue of compensation at financial institutions with more than $1 billion in assets.