The area of director compensation, regardless of sector, is a very sensitive area – for obvious reasons – the board is making a decision about paying itself. This brings with it the perception of self-dealing. The risk you face is one of significant negative reaction from members and management. This is partly because of personal philosophy about the concept of paying directors in the credit union and co-operative sector. But, more so, the sensitivity comes from the reality that often members and managers usually have not been involved in compensation decisions. This report reviews the:

• pros and cons of paying compensation to directors in the credit union and co-operative sector
  
• current compensation levels in credit unions and co-operatives across Canada and compares them with the private sector,


• drivers of compensation (internal, external, personal and corporate)


• steps a board can and should take as it makes it compensation decisions, and


• advice on disclsoing and communicating director compensaiton decisions and amounts.