Retiring directors of Illawarra Credit Union and Community First Credit Union will be paid a combined $980,000 in benefits, the Information Document for the proposed merger with between Illawarra and Community First shows.
Community First Credit Union and Illawarra Credit Union announced their plan to merge in May.
Illawarra has around $950 million in assets, 25,000 members and one branch.
Community First has $1.4 billion in assets, 58,000 members and 12 branches.
“Increasing competition, higher compliance costs and general inflationary pressure continue to lower margins, limit future investments in technology, and impact business decisions on expansion opportunities” the board of Illawarra told members.
“As stand-alone organisations, CFCU and ICU would be required to spend twice the amount than a combined entity could achieve through the purchase of separate licences and installation costs. This saving could then be spent on meeting more members’ needs through more competitive product pricing, fair fees and high standards of service.”
Unusually, the Information Document details benefits for the current Directors of Illawarra Credit Union and Community First Credit Union who will not become or remain as directors of Community First after the merger..
Each will receive a payment immediately before the merger, subject to members of the relevant company approving the payments at their Special General Meeting.