Comment from Juli, Hopfer
Juli HopferOpposeIndividual
Summary: The commenter expresses concern that the proposed merger includes language regarding a special member dividend that could be perceived as a bribe or a form of financial coercion. They argue that the promise of a dividend contingent on the merger's approval undermines the integrity of a free and fair voting process.
The first page of our merger packet has some wording that in my view isn't appropriate. And this dividend was mentioned multiple times throughout the packet. Voting is supposed to be free from coercion, undue influence, or financial pressure, but this doesn’t seem to align with that. This could be seen as a bribe for votes, and if the merger doesn’t pass, members won’t get the dividend. Jeremy Presta, CEO of Parkside Credit Union, mentioned that the merger process must be completed and voted on. However, I understand this might not be entirely accurate, as the board could potentially halt the process at any time before the vote.
"There are three important reasons we are recommending this merger. First, this merger returns meaningful value directly to you as a member. As part of the proposal , a special member dividend of more than $10 million is expected to be distributed. Every member will receive at last $500, and many will receive significantly more based on their relationship with the credit union. This reflects the value that has been built over many years and returns a portion of that value directly to the membership."