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Board members, CEOs differ on executive compensation issues.

A Coopers & Lybrand survey of 500 directors of large corporations and 500 chief executive officers found the two groups in disagreement on a number of executive compensation issues.

Of the directors polled, 56% believe shareholders should have a greater influence on executive compensation. However, 59% of the CEOs are opposed to such a move.

A slight majority (53%) of the directors were opposed to a cap on executive compensation levels. By contrast, 69% of the CEOs were opposed to such a cap. However, 75% of both groups agreed that executive pay should be tied to company performance.

According to Janet Fuersich, national director of compensation consulting at Coopers, "These differences will be a stumbling block to developing a compensation program that satisfies executives, directors, employees, shareholders and regulators."

First-quarter call report data for the nation's 465 retail credit unions with assets exceeding $100 million were released on June 16, 1992. An analysis by Veribanc, Inc., the bank rating company, shows the recovery that began last year in large credit unions is continuing.

Net income for the group rose to $405 million in the first quarter of 1992. On an annualized basis, this would translate into a 40.1% increase over yearend 1991 levels. Problem loans were off 8.7% from the end of 1991, down to $790 milHon. Equity and loan loss reserves stood at $9.65 billion, up 2.9% from yearend 1991.

As with banks, however, the credit unions appear to have difficulty working off their real estate portfolios, which include foreclosed mortgages. Total real estate owned by the group rose to $125 million in the first quarter of 1992, a 12% increase from the end of 1991.
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Article Details
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Publication:Journal of Accountancy
Article Type:Brief Article
Date:Sep 1, 1992
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