2026-03754Proposed Rule

Credit Unions Get Green Light for Loan-Driven Employee Bonuses

Published Date: 2/25/2026

Proposed Rule

Summary

The National Credit Union Administration (NCUA) wants to make it easier and clearer for credit unions to pay their employees bonuses and incentives tied to loans and credit lines given to members. This change affects credit union officials and staff by allowing more flexible pay based on how well the credit union is doing financially. You have until April 27, 2026, to share your thoughts on this proposed update.

Analyzed Economic Effects

3 provisions identified: 3 benefits, 0 costs, 0 mixed.

Bonuses Can Include Loan Metrics

The proposed rule would let federally insured credit unions (FICUs) pay employees — including senior management — incentives or bonuses that incorporate lending-related metrics as part of the credit union's “overall financial performance.” Examples mentioned include aggregate loan growth or loan delinquency or loss rates as possible lending-related metrics that boards may consider.

Defined 'Overall Financial Performance'

The proposal would add a regulatory definition of “overall financial performance” as a quantifiable metric or set of metrics set by a credit union's board of directors to measure targeted performance goals. The definition also says no compensation plan may permit unsafe or unsound practices or unsafe reliance on individual metrics, and plans must not conflict with other laws.

NCUA Says Small Credit Unions Won't Be Hard Hit

The NCUA certifies the proposed rule would not have a significant economic impact on a substantial number of small credit unions. For its analysis, the NCUA counts small credit unions as those with under $100 million in assets.

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Key Dates

Published Date
Comments Due
2/25/2026
4/27/2026

Department and Agencies

Department
Independent Agency
Agency
National Credit Union Administration
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