Board compensation varies depending on the credit union's size, location, and other factors like the member’s education and experience.
Are you interested in joining a credit union board of directors and wondering if you’ll receive compensation for your time and effort? Serving on a credit union board of directors provides an excellent opportunity to make a difference in your financial institution while expanding your professional network.
Most credit unions have a compensation committee responsible for selecting and evaluating members’ salaries and other compensation packages. The committee must strike a balance to ensure the organization’s financial stability, investor expectations, and competitive retention strategies.
So, do credit union board members really get paid? Keep reading to find out. We’ll even introduce you to our board management software purpose-built to help you improve the effectiveness of your board. Bonus: OnBoard is endorsed by the Credit Union Executives Society (CEUS) and other recognized credit union organizations and associations!
What is a Credit Union Board of Directors?
A credit union board of directors is a group of elected individuals responsible for overseeing the operations and decision-making of a credit union. They’re tasked with setting policies, approving budgets, and ensuring the credit union operates in the best interests of its members.
Credit union boards help financial institutions operate effectively. Some of the aspects they contribute to include:
- Governance: The credit union board of directors is responsible for setting the overall direction of the credit union and ensuring it operates in compliance with relevant regulations and laws.
- Accountability: Board members are accountable to the credit union’s members, who elect them to represent their interests.
- Leadership: Board members provide leadership and guidance to the credit union’s management team. They help define the credit union’s culture, values, and mission and offer oversight to ensure it delivers on its promises.
Credit Union Board Member Compensation
Board compensation varies depending on the credit union’s size, location, and other factors like the member’s education and experience. Some credit unions offer compensation as a stipend, while others only provide reimbursement for expenses incurred while performing board duties.
Based on data from Indeed, the mean annual salary for a member of a board is approximately $84,531. A board of director’s compensation can vary based on several factors, including:
- Location: Credit unions operate within specific communities or regions, and the cost of living and prevailing wage rates in these areas can impact board member compensation. Board members in areas with a higher cost of living may receive higher salaries than those in lower-cost regions.
- Credentials: The member’s qualifications and experience can also influence their compensation. Board members with specialized expertise or certifications may receive higher salaries than those without such qualifications.
- Education: Credit unions also value ongoing learning and professional development. Therefore, board members with advanced degrees or additional education may receive higher compensation. You can opt for credit union board training programs to enhance your skills.
How to Improve Credit Union Board Effectiveness
If you’re looking to improve the effectiveness of your credit union board, consider investing in board management software. Some of the benefits of using board management software:
- Streamline Communication: Board management software provides a platform for board members to communicate and share documents in a secure and organized manner.
- Promoting Collaboration: Board management software makes it easier for members to collaborate, either in-person or remotely, on projects and initiatives.
- Enhancing Governance: Board management software can improve governance by providing a platform for board members to access important documents and information, such as meeting minutes, financial reports, and compliance documents.
How to Utilize Board Management Software
Board members often utilize board management software to improve their effectiveness and streamline their responsibilities. Here are some examples:
- Access board materials: Board management software allows board members to access meeting agendas, minutes, reports, and other essential documents in one central location.
- Collaborate with other members: Board management software often includes communication tools like discussion boards and messaging systems. These features enable board members to collaborate and communicate more efficiently, especially between meetings.
- Conduct board evaluations: Many board management software offers evaluation tools that allow board members to provide feedback on the board’s performance and identify areas for improvement.
- Risk Management for Credit Unions: Board management software typically provides enhanced security and privacy measures to protect confidential board materials and discussions.
- Manage tasks and responsibilities: Board management software helps members prioritize their duties and responsibilities. The software can send reminders and notifications for upcoming tasks, deadlines, and meetings.
Getting Started With OnBoard
The importance of a well-organized credit union board cannot be overemphasized, especially because of its primary role of protecting the members’ financial interests. With the right credit union board management software, board members can perform their duties securely from the comfort of their own homes.
As the only board meeting solution designed with credit unions in mind, hundreds of credit union boardrooms trust OnBoard with their boardroom needs. With eSignatures, Zoom integration, and robust security, board members can collaborate more efficiently, saving time for strategy that benefits the credit union and its members.
Would you like to learn more about board management software and how it can help improve your board’s effectiveness? Download our free Board Management Software Buyer’s Guide.
Frequently Asked Questions (FAQ)
What are the Advantages of Being on the Board of Directors at a Credit Union?
Being on the board of directors at a credit union offers various advantages, such as gaining valuable leadership and financial skills, networking opportunities, and the ability to impact the credit union positively.
What are the Disadvantages of Being on the Board of Directors at a Credit Union?
Some potential disadvantages of being on the board of directors at a credit union include potential conflicts of interest and the need to devote significant time and effort to board-related activities.
About The Author
- Senior Customer Success Manager Gabe Smith joined the OnBoard team in 2019. A graduate of Wabash College, he majored in political science and has spent more than a decade of experience working in software designed for nonprofit organizations. “I enjoy working within a user-friendly system that brings board governance fully into the Age of Technology,” he says. An Indianapolis resident, Smith is a die-hard support of Liverpool Football Club.