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Sponsored
Essay:
"Credit
Unions Should Disclose Executives' Salaries"
See below.
News Highlights
Standard-Examiner editorial
worries that Skull
Valley
high-level nuclear waste storage
could hurt Hill Air Force Base. Salt Lake Tribune editorial
takes on Congressman Rob
Bishop over wetlands. Utah 's economy: Deseret
Morning News sees “pause,' while Tribune
sees 1.9 percent job growth in July.
Quote of the Day
“The benefits of this technology are limited only by our
imagination. I would suggest this is the new frontier of human productivity.”
- EPA Chief Mike Leavitt, commenting on a proposed
new Global Earth Observation System of Systems (Salt
Lake Tribune)
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Wednesday
Buzz
Compiled
and Written by LaVarr Webb |
| Wine, Cheese, & Give
as Moved Upon
I try to avoid Democratic fundraisers, but I'm obviously missing
out on some fun. I recently received a notice that new neighbors
Ted Wilson and Bruce Baird will
host a fundraiser for Rep. Jim Matheson that will
be “Chaparoned (sp) by Dave Jones & the Association
for the Advancement of Psychology.” (What??) Rep. Brian
Baird, a U of U grad and congressman from Washington state,
will attend. The event is Monday, Aug. 30, 5:30-8:30 p.m., 1729
Kensington Ave. Remarks at 6:30. The notice promised “Wine, Cheese
& Good Conversation.” As for suggested contribution amounts,
these guys are really twisting arms: Please donate “as the spirit
moves you.”
Presidential Race Watch
In his Tuesday column, National Journal analyst Charlie
Cook looks at the battleground states: “At this point,
there remain 10 states that are too close to call: Florida with
27 electoral votes, Iowa (7), Minnesota (10), Missouri (11), Nevada
(5), New Hampshire (4), New Mexico (5), Ohio (20), Pennsylvania
(21) and Wisconsin (10). While too close to call, these states are
not necessarily dead even.
In Pennsylvania, President Bush, after holding a consistent lead
over Kerry, finally slipped behind last month, but not far enough
to warrant moving it into the "Lean Kerry" column. The same case
exists in Florida, where a recent poll by a Republican firm for
a private client put Kerry up by four points, but no one believes
that the state is anything but a toss up. In Minnesota, New Hampshire
and New Mexico, Kerry seems to be up by a bit, but again not quite
enough to move those into the Kerry column. Bush is ahead in Missouri,
but it's a close call as to whether the lead is big enough to justify
moving it into the "Lean Bush" column.
“In adding up all the electoral votes that are in the safe and
lean columns for each candidate, Bush has a tight 211 to 207 lead
in the Electoral College.” But Kerry seems to be ahead by a slight
margin in most of the toss-up states and if they stay with him Kerry
would come out on top.
Cook also noted “mind-boggling” amounts of money being spent in
the battleground states. Add together the spending of the Kerry
and Bush campaigns, The Media Fund, AFL-CIO, MoveOn.org, other 527s
and other types of independent committees, and a whopping $41.5
million has been spent on television in Florida, $30.7 million in
Ohio, $24.9 million in Pennsylvania, $18.4 million in Michigan and
$18.2 million in Missouri. Even in little Nevada, $10.1 million
has been spent. That figure amounts to $16.62 per presidential election
voter in Nevada, the highest per-voter amount in the country. And
“these figures are for television alone and do not cover any door-to-door
canvassing, telephone banks, direct mailings and other efforts in
this herculean campaign being waged by both sides.” To sign up for
Cook's e-mail column, click
here.
Is This the Same Story?
Salt Lake Tribune business headline
Tuesday: “Huntsman Cos. report $185 M loss.” Deseret Morning
News business headline
Tuesday: “Huntsman companies report earnings of $116.3 million.”
Given the complexities of corporate financial reporting, both headlines
may be right. The News story was a business brief, probably
written from a news release. The Tribune story was a longer
bylined piece with more detail.
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| Sponsored
Essay
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| (Note:
Agenda
Utah periodically
publishes persuasive essays on behalf of clients or causes.)
Credit Unions Should Disclose Their Executives' Salaries
to Members
By Barbara
Jean Jones
Council
for Sound Tax Policy
Million-dollar
salaries for CEOs of large credit unions have become the object
of increasing news media scrutiny in Oregon. Reporters have written
several stories about Cliff Dias, the CEO of the Portland Teachers
Credit Union, who received a salary
of $1.6 million last year. These news reports prompted further
stories about the Eugene-based SELCO Community Credit Union, which
paid its CEO $1.5
million in salary and retirement contributions last year. The
pay scandal has a lot of Oregon credit union members asking hard
questions.
This
issue is highly relevant in Utah because large credit unions here,
as in Oregon, do not want to disclose executive salaries to members.
When I say “large credit unions,” I'm making the same distinction
that Utah legislators made two years ago. I'm talking about big
credit unions that have tens of thousands of members because their
membership is open to the general public across a large geographic
area. I'm not talking about the traditional, smaller credit unions
whose members still share a definitive common bond.
The
interests of average members of these large credit unions are pitted
against top executives who want to keep secret their salaries, incentives
and bonus packages. It is difficult to learn what executives are
being paid in big credit unions like Mountain America
or America First. Members may need to demand disclosure
by boards or encourage journalistic digging.
In
Oregon, state regulators felt members should be informed of Dias's
salary before the Portland Teachers CU could consummate a merger
with another credit union. But the two credit unions didn't want
to disclose the salary to members, and the merger eventually was
called off. In Utah, big credit unions have fought legislative
attempts to require disclosure of salaries to members.
The
salary matter would not be an issue were it not for the fact that
credit unions are member-owned, nonprofit and, as income tax-exempt
entities, they are subsidized by taxpayers. Owners of other businesses,
whether private or publicly-traded, always know what salaries are
being paid to their top executives, or can readily find out. Shareholders
make it a point to scrutinize executive salaries. But the member-owners
of the big credit unions are kept in the dark.
High
salaries are also an issue because credit unions are very special
institutions. Besides being nonprofit and tax-exempt, they were
originally established to serve “people of small means” who share
a “common bond.” Million-dollar salaries don't quite fit with the
credit union mission. It would be like a local Boy Scouts of America
executive or the director of a local United Way chapter paying themselves
huge salaries. Most categories of nonprofit organizations, in part
to maintain their nonprofit status, routinely reveal executive salaries.
It is entirely out of character for a member-owned, nonprofit, tax-exempt
institution to refuse to disclose executive salaries to members.
Members
of big Utah credit unions, like their counterparts in Oregon, ought
to start asking questions. Money used to pay high salaries could
instead be returned to members as dividends or used to reduce interest
rates on loans.
The
secret salary issue is symptomatic of the larger problem of member
rights in big credit unions. Membership in a small credit union
where a “common bond” still exists, is meaningful because members
know what's going on. They know the board members and can have a
say in management of important matters like the disposition of “profits”
or retained earnings.
But
member rights are almost meaningless for those credit unions that
have grown into big, billion-dollar, financial institutions with
tens of thousands of members. Members of these types of credit unions,
who can't even learn how much their executives are paid, are made
powerless, for all practical purposes, to truly determine the direction
of their credit union.
For
example, some members of large credit unions may prefer to use the
millions of dollars in retained profits, above required reserve
amounts, to improve borrowing and lending rates, or provide a dividend
to members, instead of using the profits to advertise aggressively,
expand into new markets—even in other states—build expensive
new branch facilities, pay large salaries, and buy up smaller credit
unions. Many members can't see how those expansion activities benefit
them as much as having the profits returned to them as owners.
As
credit unions are member-owned institutions, members ought to be
empowered to know executive salaries and members ought to guide
key management decisions through procedures requiring majority votes
of all members. Otherwise, are credit unions truly “member-owned”?
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Elected Officials Birthdays
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| Rep. LaVar Christensen,
District 48, August 18
Rep. Michael T. Morley, District 66, August 21
Sen. James Evans, District 1, August 26
Sen. Leonard M. Blackham, District 24, August 26
Entire
Birthday List
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Wednesday
August 18, 2004
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Please submit calendar items to AgendaUtah@UtahPolicy.com
- Aug 17-18: Constitution Party starts 12-week
history of Constitution course taught by Jim Brown. Class A is Tuesday
nights starting Aug 17. Class B is Wednesday nights starting Aug
18. 7-8:30 pm. 801-557-9225.
- Aug 18: Voice for Moderation Meet the Candidates
night. Meet Democratic candidate for Governor Scott Matheson, and
Salt Lake County Auditor candidates Sean Thomas and Peter Stevens
at 6 pm at the Anderson/Foothill Library located at 1135 So. 2100
East in Salt Lake City.
- Aug 18: Rep. Rob Bishop town meeting 8-9 pm,
Tooele County Courthouse, 47 S Main, Tooele.
- Aug 18-21: Davis County Democrats looking for
volunteers for their Davis County Fair booth, call Pat Herrera 801-546-0283.
- Aug 19: Rep. Rob Bishop town meetings 6-7 pm,
Weber County Commission Chambers, 2380 Washington Blvd, Ogden; 8-9
pm, West Haven City Offices 2440 S 2050 W.
- Aug 20: Matheson for Congress Fundraiser, Open
House sponsored by Iron County Democrats, 7-9 pm. Call 435-865-7482
for location.
- Aug 20: Jon Huntsman at Box Elder Republican
BBQ, 6 pm, Marble Park, Bothwell. 435-723-7410.
- Aug 24: Greg Skordas for Attorney General Fundraiser,
5:30 pm, Em's Restaurant, 271 N Center St, SLC, $100 suggested contribution.
- Aug 24: Attorney General debate on KRCL radio,
90.9 FM, Noon - 1 pm, at 1971 W. North Temple, Salt Lake City, UT.
- Aug 24: Green Party of Utah Roots Local Monthly
Meeting, 12 pm, Sprague Library, 1100 East, just past 2100 South,
Salt Lake City. Contact: 486-2558.
- Aug 26: Jon Huntsman at Park City Sunrise Rotary
Club, 7:45 am.
- Aug 26: Jon Huntsman at Utah Mining Association,
11 am, Grand Summit Hotel, The Canyons Resort.
- Aug 26: Davis County Democrats Picnic, 6 pm,
Barnes Park, West on 200 N in Kaysville.
- Aug 26: Jon Huntsman Jr at Utah Republican Hispanic
Assembly meeting, Salt Lake City Main Library (210 E 400S) in the
lower level Conference Room B at 5:30 pm. Visitors welcome.
- Aug 26: Salt Lake County Libertarian Party monthly
meeting, 7 pm, Bohemian Brewery & Grill, 94 E 7200 S Midvale.
- Aug: 27: Jon Huntsman Jr fundraiser at Delta
Center, $100 for single ticket up to $5,000 for platinum table.
Call 737-1811.
- Aug 27: Rep. Rob Bishop town meeting 7-8 pm,
Brigham City Council Chambers, 20 N Main.
- Aug 28: Rep. Rob Bishop town meetings 11-noon,
Salt Lake County Council Chambers, 2100 S State; 2-3 pm Oakley City
Bldg, 960 W Center. 7-8 pm Rich County Courthouse, 20 S Main, Randolph.
- Aug 28: Disco Party for Mark Wheatley for Legislature,
7:30 pm, Former Bob Rice Mansion, 4421 Zarahemla Dr, Olympus Cove,
SLC. Park at Olympus Hills Mall, shuttle service provided, suggested
donation $15, More info call Josie Valdez 801-264-8844.
- Aug 30-Sept 2: Jon Huntsman attends Republican
National Convention, New York City.
- Sept 2: Professional Republican Women monthly
meeting, 11:45 am, Panini's restaurant, Wells Fargo Building, 299
S Main, SLC, $20 RSVP call 801-270-0802.
- Sept 2: Progressive Democratic Caucus Meeting,
6:30 pm to 8:00 pm, 455 South 300 East, Suite 102, Salt Lake City.
Contact: Craig Axford (801) 918-6017.
- Sept 3: Huntsman campaign at Midway Swiss Days.
- Sept 4: Jon Huntsman at Hispanic Fiesta Days,
3 pm, Gallivan Center, SLC.
- Sept 4: Libertarian Party meet/greet/eat fundraiser,
11am-10 pm, Baja Fresh Mexican Grill, 911 East Fort Union Blvd,
Midvale. 15% of purchase donated to Libertarian Party if you identify
yourself as a Libertarian.
- Sept 3-4: Huntsman campaign at Iron County Fair,
Cedar City.
- Sept 7: Utah Log Cabin Republicans Monthly Meeting,
7:30 pm, Room N4010, Salt Lake County Building, 2001 South State
Street, Salt Lake.
- Sept 9: Huntsman Campaign at United Way Day
of Caring Breakfast, 7:30 am, Lavell Edwards Stadium, BYU; Logan
Rotary Club, 12:30pm, Coppermill Restaurant, Logan; also at Vietnam
Veterans meet the candidates night, 7 pm, Salt Lake City Library,
4th floor, 210 E 400 S.
- Sept 9: Sutherland Institute seminar "The Rules
of the Game-Applications in Boundaries and Procedures," 8:30-11:30
am, 6th Floor 150 E Social Hall Ave, SLC. Register: 801-355-1272.
- Sept 11: Davis County Democrats No-Host Breakfast,
8:30 am to 10:00 am, Joanie's Restaurant, 286 North 400 West, Kaysville.
Contact: Richard Watson (801) 292-6772.
- Sept. 15: Attorney General Mark Shurtleff's
annual "Wasatch Challenge." Trap, skeet and target shooting, Western
entertainment and down-home cooking. Call 801.746.3030 or email
info@markshurtleff.com
for more details.
- Sept 15: Jon Huntsman at National Assisted Living
Week luncheon, noon, Legacy Retirement Residence, South Jordan.
- Sept 15-17: Utah League of Cities and Towns
Annual Convention, register: www.ulct.org
- Sept 16: Jon Huntsman at the Salt Lake Women's
Republican Club Meet and Mingle Night, 6:30 pm, Bicentennial Park,
Sandy.
- Sept 17: Jon Huntsman at Salt Lake County Republican
BBQ, 6 pm, Murray Park.
- Sept 17: Utah League of Cities and Towns gubernatorial
debate, 9 am, Sheraton Hotel, 150 W 500 S, SLC.
- Sept 17: Jon Huntsman at Governor's Council
for People with Disabilities, noon, 750 W Heritage Park Blvd, Layton.
- Sept 17: Salt Lake County Republican Party's
Constitution Day Picnic, 6 pm, Murray Park. Come meet the candidates!
- Sept 18: Jon Huntsman at SLC Avenues Fair, 8
am.
- Sept 23: USACCC Annual Conference, Homestead
Resort, Midway.
- Sept 25: Republican Central Committee Meeting.
- Sept 28: Green Party of Utah Roots Local Monthly
Meeting, 12:00 pm, Sprague Library, 1100 East, just past 2100 South,
Salt Lake City. Contact: 486-2558.
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