2024 Credit Union CEO Compensation Insights
Market data for screening executive candidates in today's competitive landscape
Based on Gallagher's 2024 Executive Compensation and Benefits Survey
Data from 725 credit unions and 2,530 executives
Current Market Trends
The Executive Landscape
The demand for highly skilled and successful leaders continues to grow, creating a competitive market for proven talent. Credit unions need to leverage compensation and benefits strategically to attract and retain top executives.
Average CEO Salary Increase
Double the increase rate since 2014
Average Target Bonus
Up from 14% last year
CEOs Aged 60+
Half of CEOs are 55+ years old
Retention Challenges
The executive marketplace is being driven by several factors that impact recruitment and retention:
- Aggressive strategic goals requiring specialized leadership
- Increased merger and acquisition activity
- Focus on succession planning
- CEO retirements (29% of CEOs are 60+ years old)
- Post-pandemic early retirement trends
Executive Compensation Benchmarks
CEO Salary Growth
Average CEO salary grew 12% from $191,000 to $214,000 in the past year.
CEO Bonus/Incentive Structure
Target bonuses increase with asset size and average 20% of salary overall (up from 14%).
| Asset Size | 50th %ile | 75th %ile |
|---|---|---|
| $5B+ | 50% | 60% |
| $3B-$5B | 35% | 40% |
| $1B-$3B | 25% | 30% |
| $500M-$750M | 17% | 25% |
| $250M-$500M | 14% | 20% |
Executive Benefits Overview
Nonqualified Benefit Plans
Among credit unions with $100M+ in assets, 75% of executives receive nonqualified benefit plans. Usage increases with institution size.
Split Dollar vs. 457(f) Plan Usage by Asset Size
Split Dollar Plan Design
For Split Dollar plans based on pre-retirement salary, the median target benefit is 60% of salary.
Split Dollar plans provide tax-free retirement income and can mitigate expenses while generating income for the credit union.
| Percentile | Target Benefit |
|---|---|
| 90th | 80% |
| 75th | 70% |
| 50th (Median) | 60% |
| 25th | 50% |
| 10th | 40% |
Executive Screening Guide
Key Screening Questions for Candidates
Based on the 2024 survey data, here are critical areas to explore with executive candidates:
Compensation Expectations
- What are your salary expectations given our credit union's asset size?
- How does your current compensation package break down between base, bonus, and benefits?
- What performance metrics have your bonuses been tied to in the past?
Long-Term Benefits
- What types of executive benefits have been important to you?
- How do you value Split Dollar plans vs. 457(f) arrangements?
- What retirement income target (% of salary) are you aiming for?
Strategic Alignment
- What performance metrics do you believe should drive executive incentives?
- How do you view the balance between short-term results and long-term strategic goals?
- What retention factors beyond compensation are most important to you?
Career Timeline
- What are your long-term career goals with our organization?
- How do you approach succession planning and developing future leaders?
- What role do you see yourself playing in talent development?
Executive Package Assessment Checklist
| Component | Market Benchmark | Screening Consideration |
|---|---|---|
| Base Salary | 7% average annual increase | Is candidate's expectation aligned with 7% YoY growth? |
| Bonus/Incentive | 20% of salary (average) | Do performance metrics align with strategic goals? |
| Split Dollar Plan | 45% of CUs $250M+ offer it | Is 60% of salary target benefit acceptable? |
| 457(f) Plan | Growing with asset size | How does candidate value tax-deferred vs. tax-free benefits? |
| Career Timeline | 29% of CEOs are 60+ years | Does timeline align with credit union succession needs? |
