Servus CEO gets to keep $3.6M bonus

Servus Credit Union won't be asking its CEO to return a $3.6-million bonus.

Steve Blakely was given the bonus in 2008 during a merger with two other Alberta credit unions, Community Savings and Common Wealth credit unions.

Chairman Bill Anhorn said Blakely was given the money because it was possible he could have lost his job during the amalgamation, and he would have then been entitled to severance pay.

But in April 2008, Blakely was named CEO of the merged organization.

Despite that, Anhorn said Servus Credit Union does not expect Blakely to return his bonus.

"No. I mean, from our perspective he had a gargantuan task ahead of him in terms of integrating the three organizations, harmonizing all the products and services, putting all the merger package basically together, and he has done an absolutely remarkable job in that respect," he said.

Servus Credit Union customers like Megan Veigh say the bonus is excessive.

She pointed out that as partial owners, each customer receives a portion of the credit union's yearly profits.

All Servus Credit Union members split $12 million in profits in 2008, she said, but they would have split a lot more if that bonus hadn't been paid.

"If they're sharing $12 million with the members and one person is getting almost $4 [million], then I don't think it's in the interest of the members," Veigh said.

Anhorn said the decision to provide the $3.6-million bonus was made a year ago, long before the current controversy over such payments.