Credit Unions in the State of California

“The credit union's members have rights to elect the members of the governing body. The credit union's members also receive a share of the organization's profits in the form of cash dividends.”

“Members of the credit union have the right to elect one or more members of the organization's governing body, whether periodically, or as vacancies arise, or otherwise.”

“Members of the credit union have the right to approve the governing body's election and removal of members of the governing body, as well as other matters that are subject to the approval of members of the credit union as they occur.”

“The accounting department prepares the information which is then reviewed by senior management. The 990 is presented to the board chair before filing, and a copy is made available for all board members.”

“The credit union has a conflict of interest policy for its staff, officials, and the board of directors. Conflict of interest by employees when handling member accounts is monitored by the computer system. Board members cannot vote on matters where there is a conflict of interest.”

“Annually during the budget process, the board of directors reviews and approves the compensation ranges for each position. These ranges are developed by the human resources department using comparable data specific to the credit union industry. The ceo salary is by contract and reviewed and approved by the board of directors.”

“Financial statements are posted in the lobbies of all offices. All other requests must be presented in writing to the board of directors. Documents are available upon request for the same period of disclosure as set forth in section 6104(d).”

“Coast central credit union retained mcgladrey, a national accounting and consulting firm, in 2010 to conduct a comprehensive study of the reasonableness of the total compensation package provided to the president and ceo, dean christensen. The study contemplated all forms of economic benefit which were benchmarked against appropriate comparable data. The study concluded that the total economic benefit provided to the president/ceo is reasonable. Since 2010 his annual compensation increases have been in line with credit union industry salary surveys for ceos of comparable size credit unions. Explanation of various forms of economic benefit provided to key persons of coast central is provided below. Schedule j explanation of "bonus and incentive compensation" the credit union has two primary incentive compensation plans, an annual incentive compensation plan that all employees are eligible for and a long-term deferred incentive compensation plan for eligible senior management. Goals are established by the credit union for each of these plans to provide incentive and rewards to employees for achieving results that improve and strengthen the credit union. The goals are established for each of these plans at the beginning of the incentive plan period. For the annual plan,payouts are made to participants based upon achievement of the annual goals. For the long-term deferred plan, the goals must be achieved over a three year period for the participant to earn a payout under the plan. The president/ceo earned a payout from one other incentive plan provided by the credit union. The retention incentive plan required the president/ceo to provide continuous service through a specified date. Although the amounts reported on the w-2 and schedule j is properly reported for the year, it is important to note that certain members of the senior management team are long-serving executives and the incentives earned provide rewards for their many years of service, not only the current year. Years of service for those exceeding twenty years are as follows: dean christensen, 25 years and james sessa, 33 years. Included in the president/ceo compensation, as reported on the w-2 and schedule j, is $351,441 which reflects compensation for services rendered by the president/ceo during the period of 1989 through 2014. Included in the svp of administration/cfo's compensation, as reported on the w-2 and schedule j, is $79,901 which reflects compensation for services rendered by the svp of administration/cfo during the period of 1981 through 2014. Schedule j explanation of "other reportable compensation" the credit union has established a 401k retirement plan for all eligible employees. It has also put in place other plans and funding payments to provide a reasonable targeted retirement benefit for higher paid employees because of the limitations under qualified plans such as our 401k plan, which creates a reverse discrimination effect. The credit union provides in lieu payments to an individual once the qualified limit is reached equal to what otherwise would have been contributed to the plan if not for the limitation. In 2010 coast central credit union attached to its 990 filing a "split dollar nonrecourse loan representation". The 2014 form 990 does not allow pdf attachments to be included with the electronically filed form 990, with the exception of specific attachments required by the irs. Coast central credit union has an e-file requirement and cannot paper file unless required to do so by the irs. If a paper copy of the return is filed when it is not required the irs may consider the return as not timely filed; therefore the "split dollar nonrecourse loan representation" is available upon request.”