Wow, Duca new 6% HISA rate | Page 8 | DUCA Credit Union | Discussion forum

MarkFog said

You're looking at it as some kind of partnership. The account holders are always going to get the short end when it comes to FIs. You realize the profits they make annually and what we get are just slivers. They make their money by simply loop-holing through rules, regulations and laws to maximize profits for shareholders. That's why I have no loyalty to any FI since their loyalty is to only the top 2%.  

Duca, supposedly is a Credit Union wherein the member account holders are supposed to be the owners. So why are we being treated so badly? My thesis is that CEO CONick is getting a big bonus based on performance metrics. If this proves to be true, he is not acting in the best interest of the owners and should be fired. I invite all internet sleuths to look into how DUCA C-Suite executives get compensated.

As thought, Duca has a Short Term Incentive Plan (STIP) and a Long Term Incentive Plan (LTIP) as per screenshot 1. CONick's 2022 Salary was $471,000. His bonus was $423,000 which is $80,000 or 23.32% more than in the year 2021.

Screenshot 2 shows the total Compensation for CONick as $970,000 for 2022.

From the huge increase in his bonus, in my opinion, he is pushing for STIP right now at the expense of screwing over member owners while degraded Duca's long term prospects as disaffected members leave. From the pictures, he is close to retirement so LTIP is not important to him. It would not surprise me if he is gone in a few years from now.

Note: Duca makes it impossible to easily copy the text in their online Annual and Financial reports, which is why I have resorted to screenshots.

cgouimet said

There's bigger $ for DUCA than our individual shares, surprisingly ...  

You ain't kidding. How can a two-bit credit union with $16.3M (2022) in net income give about $3 Million (~20%) to the top 5 employees? After paying all Duca employees, the real owners - the members, get 'Flex Rewards' worth $0.50, if that.

I expressed many of these opinions recently to some of the uppers. My question was if they are coming up with a new HISA promo why aren’t those currently enrolled rolled into the new one without having to monitor and call in and create yet more accounts. As an existing loyal member owner why isn’t my protection and best interests incorporated into the decision making.
The response was that many macro and micro issues are at play that we don’t all see and although they understand some of the frustrations that’s what it is. I asked a second time , regardless of anything macro/micro, why am I the longterm loyal member being alienated? Does that not seem very short sighted and detrimental to the DUCA brand over the long term.. I took one look at the new rate of .25 % and promptly moved my money out case in point. I felt there was a lack of concern to the issues I raised, so I’ve changed my money habits and will take steps to reduce my Duca dependency as at the end of the day they can do whatever they want and I will need to accept that

Ontario credit unions are governed by this document: O. Reg. 76/95: CREDIT UNIONS

The following extract, under 98.(2), states Credit Unions must disclose Interest rate changes. The odd thing is there is no indication of how much advance notice is to be provided. Duca notifications come after the fact....so can it be considered a "Notification"?

PART XVCONSUMER PROTECTION
DISCLOSURE RE INTEREST RATES, ETC.
98. (1) A credit union shall disclose to a prospective depositor the applicable rate of interest for the person’s account and the manner of calculating the interest payable.
(2) If the rate of interest or the manner of calculating interest on the account changes, the credit union shall inform the depositor of the change. O. Reg. 76/95, s. 98.
99. If a credit union renews a term deposit account, the credit union shall disclose to the depositor the rate of interest for the account and the manner of calculating the interest payable. O. Reg. 76/95, s. 99.
100. (1) In an advertisement about an interest-bearing deposit or a debt obligation, a credit union shall disclose how the interest is to be calculated and any circumstances that will affect the rate of interest.
(2) An advertisement about an interest-bearing deposit must state how the balance of a deposit account will affect the rate of interest. O. Reg. 76/95, s. 100.
CONSUMER COMPLAINTS
101. (1) If, as a result of receiving a complaint, the Superintendent addresses an inquiry to a credit union or an officer about the conduct of the credit union’s business, the credit union or officer shall promptly reply in writing to the inquiry. O. Reg. 76/95, s. 101 (1); O. Reg. 314/98, s. 27 (1).
(2) If requested to do so by the Superintendent, the credit union shall give a copy of the Superintendent’s inquiry and the reply to each director of the credit union and the inquiry and reply shall form part of the minutes of the next board meeting. O. Reg. 76/95, s. 101 (2); O. Reg. 314/98, s. 27 (2).
102. OMITTED (REVOKES OTHER REGULATIONS). O. Reg. 76/95, s. 102.
103. OMITTED (PROVIDES FOR COMING INTO FORCE OF PROVISIONS OF THIS REGULATION). O. Reg. 76/95, s. 103.
FORMS 1-4 REVOKED: O. Reg. 314/98, s. 28.

Just wondering ... What's "Gotcha" in Dutch?

DUCA?

Could be a new neologism.
DUCA'd.
- Example, you get a 6% offer, move 100K into it, but the offer closes when 100K is in transit, so you get .25% over a 10 day hold lock-in. So you got DUCA'd for $157.53.

found Exec $ on page 45
- Only about 1 mllion a year for the CEO, those guys are eating Kraft dinner over there!

https://annualreport.duca.com/DUCA-2022-DUCA%20Audited%20Financial%20Statements.pdf

https://annualreport.duca.com/

CEO's like their cheddar, and cheese, that is for sure. Would be fascinating to see the entire Exec Comp package, as they probably use a template contract based on other bank CEO's which includes expense accounts, car, travel allowances, and probably a giant list of freebies.
But the creative Bonuses are too much comedy, as the board designs the bonus criteria, and then they fulfill it, and that is the basis for millions in bonuses over the years.
This one got 750K in bonus in the last 2 years. Do they ever not get a bonus? (nope).
Shouldn't they get a bonus tied to the Shareholders gains? (nope)
But it would be fascinating to see their CEO employment contract.

Could I just link the DUCA account from Tangerine and pull 100K out of DUCA in one go? What would be the hold period? Up to 5 days?

I am assuming this can’t be done for the promotional account as it no longer accepts money, but could I link their “earn more savings” account?