Sponsored Essay: "Credit Unions Should Disclose Executives' Salaries" See below

News Highlights

Special session likely next month (Deseret Morning News) and (Salt Lake Tribune).Tribune editorial calls for xeriscaping the Capitol grounds. Republicans hold rally, and are unhappy with Mark Shurtleff’s opposition to gay marriage amendment. (Tribune), (Morning News), (Standard-Examiner).

Quote of the Day

"We cannot wait until 2030" to construct new transportation systems. "It will cripple economics in the state."

- Lane Beattie, president of the Salt Lake Chamber, speaking to legislators about the need to accelerate transportation projects (Salt Lake Tribune)

Big-Name Fundraisers

The GOP big guns keep dropping by to help John Swallow raise money. VP Dick Cheney was in town at the end of July. House Speaker Dennis Hastert comes through today for a Swallow fundraiser in the afternoon and to promote his new book. Call Swallow's campaign headquarters, 466-8865, for details.

Who Controls the Utah News Media?

Years ago, most of Utah's major newspapers and television stations were locally owned. Today, most are owned by large, national and international media conglomerates. So what does that mean for Utah news consumers? The ramifications are probably mixed.

On the negative side, most big media corporations are very much bottom-line oriented. They want to make money on their properties and they sometimes leave reporting staffs short-handed to improve profits. They also take profits out of the community. In addition, they may not be as interested in becoming a real part of the community, and reporters, editors and publishers may be more transient as they are transferred around to different media properties. Reporters and editors also may not understand, or care much about, the local culture. They may do more formula reporting, mimicking what sister properties have done in other markets.

On the other hand, a media property owned by out-of-state interests may be more willing to cover sensitive and controversial topics. Their owners may have deeper pockets and more resources than a local owner. Editors and publishers with experience in other markets may bring fresh ideas and proven capability.

Dean Singleton of MediaNews Group, owner of the Salt Lake Tribune, had a reputation earlier in his career as a budget-slasher who damaged the quality of the newspapers he purchased. In recent years, however, he has seemed willing to invest in his big papers, including the Tribune, to improve journalism and provide needed resources.

The only locally-owned major media are KSL Television and Radio and the Deseret Morning News, both owned by the LDS Church. But being owned by such a large, international, influential, high-profile institution in Utah is both a blessing and a curse, an interesting subject for later discussion.

Ownership of Utah 's six daily newspapers:

Deseret Morning News: LDS Church

Salt Lake Tribune: MediaNews Group, Denver

Daily Herald: Pulitzer Newspapers, St. Louis

The Spectrum: Gannett, McLean, Virginia

Standard-Examiner: Sandusky Newspapers, Sandusky, Ohio

Logan Herald Journal: Pioneer Newspapers, Seattle

Television:

KSL TV5: LDS Church

KUTV2: Viacom Local Networks

KTVX4: Clear Channel Communications

KSTU13: Fox Television Stations, Inc.

Many Utah radio stations and even weekly newspapers are also owned by out-of-state media companies.

(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”?

Rep. Michael T. Morley, District 66, August 21
Sen. James Evans, District 1, August 26
Sen. Leonard M. Blackham, District 24, August 26

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National Review Online
- Mitt Romney: The Summit

Deseret Morning News
- Special-session agenda taking shape
- Lawmaker's bill asks, 'Who's a parent?'
- Gay nuptials to be debated
- American Fork Canyon cleanup touted
- County may cede control to soon-to-be city
- Decision nears on Workman
- Provo has plans for extra cash from feds
- Ex-state official accused of brandishing gun on I-15

St. George Spectrum
- Lobbyist speaks to Hurricane Valley Republican Women

Standard-Examiner
- Supporters of marriage amendment vow success

Salt Lake Tribune
- Gross gives his side of gun incident
- Partners to clean up mine pollution
- Lawmakers talk of tax hike for transportation
- Davis school board votes for tax hike
- Feds say poll judges misinterpret Utah law
- Amendment 'rally' rips Shurtleff
- Walker to call a special session in September
- Editorial: Hold the middle
- Editorial: Capitol landscape

Please submit calendar items to AgendaUtah@UtahPolicy.com

- 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: 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.
- Oct 2: Women's Democratic Club Luncheon, 12:00 pm to 2:00 pm, Sheraton City Center, VIP 2 Room, 150 West 500 South, Salt Lake City. Contact: Sheryl Ivey (801) 942-2312.
- Oct 2: Libertarian Party meet/greet/eat fundraiser, 11 am-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.
- Oct 5: Utah Log Cabin Republicans Monthly Meeting, 7:30 pm, Room N4010, Salt Lake County Building, 2001 South State Street, Salt Lake.
- Oct 7: 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.
- Oct 9: 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.
- Oct 14: Sutherland Institute seminar "Ethical Fitness--Being an Authentic Leader," 8:30-11:30 am, 6th Floor 150 E Social Hall Ave, SLC. Register: 801-355-1272.
- Oct 26: 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.

- See the entire calendar