Guess what! The retirement wave in credit unions is real and the credit union boards are paying for it, one way or another.

"You cannot escape the responsibility of tomorrow by evading it today."
~ Abraham Lincoln

Credit union boards are now in a high-stakes race, not just against other financial institutions, but against time itself: a growing number of long-tenured CEOs and senior execs are retiring, and boards are responding with significant compensation increases to secure continuity.

What Is Driving Rising Executive Pay?

According to the 2025 CUES Executive Compensation Survey, total compensation for credit union CEOs jumped 10.2%, primarily due to record-high bonuses.

CEO base salaries alone rose 7.6% year-over-year, per CUES, even amid macroeconomic uncertainty.

The average bonus eligibility hit 95.9%, with some large-CU CEOs receiving bonuses equal to 32.7% of their base pay.

Boards are increasingly offering deferred compensation plans, split-dollar life insurance, and non-qualified benefit plans to retain senior leaders.

Why Boards Are Paying Up

The retirement of seasoned leadership threatens institutional memory and strategic stability.

Replacing a CEO or senior exec isn't just costly, it risks a loss of culture, relationships, and long-term vision.

Rising complexity (cybersecurity, regulation, digital transformation) demands highly experienced leadership.

New NCUA guidance is pushing succession planning into sharper focus: proposed rules now require written plans for key executive roles.

I experience these dynamics firsthand as President and CEO of University of Toledo Federal Credit Union.

Retaining Senior Leadership

Here's what the credit union boards should do to retain senior leadership

  • Adopt strategic compensation frameworks: use data-driven benchmarks to ensure pay is competitive and retention-focused.
  • Institute long-term, non-qualified compensation plans: use deferred compensation or split-dollar arrangements to align executive incentives with future performance and retention.
  • Build robust succession plans: identify internal talent early, assess their readiness, and give them real development opportunities so they're ready when a senior leader steps down.
  • Invest in leadership development: higher education is trending among execs, and boards are responding.
  • Monitor regulations and governance: as incentive-based compensation rules and succession planning become more regulated, proactive boards will mitigate risk and strengthen stability.

Conclusion

To every Credit Union Board Chair and Director: the cost of not acting is growing, not just in dollars, but in legacy.

If you haven't done so already, convene a leadership-retention strategy session this quarter. Revisit your compensation structures, succession plans, and development pipelines.

Let's ensure the next generation of credit union leadership is ready, resilient, and deeply invested, not just in the institution, but in its mission.

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