By Ray Birch
MADISON, Wis.—Executive compensation at credit unions is continuing to rise at a healthy clip—even in the face of an uncertain economy—and there’s little sign of the trend slowing.
That’s the key takeaway from the 2025 Executive Compensation Survey Report from CUES, according to Sharon Messmore, the organization’s product and services manager.
Messmore called the situation a “hard balance” for credit unions: while economic conditions might suggest a need to rein in expenses, the pressure to retain top leadership is winning out.
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“Credit unions don’t want their top executives to leave for banks, other industries, or even other credit unions,” she said. “They are increasing pay as part of keeping them there.”
From 2024 to 2025, the average base salary for credit union CEOs rose 7.6%, while total compensation—including bonuses—was up 5.9%. While slightly below last year’s pace for total compensation growth, the numbers remain well above typical annual increases, Messmore said.
Some executive roles saw even sharper jumps. The chief administrative and operating officer posted a 15% increase in total compensation, the chief operations officer rose 11%, and executives overseeing HR, branch operations, and client services each saw increases above 10%.
Messmore believes the surge in administrative and operations pay could signal a shift in succession planning.
“That role is being leaned on more and more as a potential successor to the CEO,” she said. “Historically, that’s been more common with CFOs, but this could be a trend to watch.”
Long-Term Patterns
The report’s data suggest these pay bumps are part of a long-term trend rather than a one-year spike. In 2024, CEO base salaries rose 7.7% and total compensation 6.9%. In 2023, base salaries climbed 5.3% and total compensation jumped 8.5%.
One factor influencing pay: asset size. Larger credit unions consistently pay more. Another: education. Messmore said more credit unions are looking for leaders with advanced degrees, such as a master’s, signaling a higher premium on formal education in the leadership pipeline.
Messmore acknowledged that in a volatile economy, the instinct might be to slow pay growth. But for many boards, the risk of losing a seasoned executive—and the costs of a search, rehiring, and retraining—outweighs those concerns.
“People want leaders who know the organization, who are doing well, and who don’t need to be replaced,” she said. “That drives the expectation of increased salaries.”
Sharon Messmore
Beyond Dollars And Cents
While pay is critical, Messmore encouraged credit unions to think more broadly about retention strategies.
“A higher salary is always nice, but it’s not the only way to make people feel valued,” she said. “Providing opportunities to mentor, learn new areas of the business, and grow professionally can be just as important as monetary compensation.”
That could mean reimagining leadership roles, offering development programs, or giving executives opportunities to redefine their responsibilities in ways that keep them engaged, she explained.
Bottom line: Credit union executive pay is still on the rise, even amid economic headwinds. For boards and HR teams, the challenge will be finding the right mix of competitive salaries, meaningful development opportunities, and long-term succession planning to keep top leaders in place, reiterated Messmore.
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