Credit Union Loaned President $26.5 Million

The State Employees' Credit Union funded an executive life insurance policy for its president in 2025.

Updated on Oct. 14, 2026 in Financial Aid

Credit Union Loaned President $26.5 Million

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In 2025, the State Employees' Credit Union provided a $26.5 million loan to president Leigh Brady for a life insurance policy. This arrangement was fully secured by the policy and received approval from the North Carolina Credit Union Division.

Why it matters

The credit union utilizes this split-dollar life insurance program as a cost-effective alternative to supplemental retirement plans for its executives. The policy proceeds are designed to pay off the outstanding loan balance following the death of the executive.

The State Employees' Credit Union, which holds over $60 billion in assets, reported a net income of $437 million for the most recent fiscal year. President Leigh Brady received $1.2 million in total compensation during the 2024-25 period.

The players

Leigh Brady

She serves as the president of the State Employees' Credit Union.

James Hayes

He is the former president of the State Employees' Credit Union.

State Employees' Credit Union

This organization is a major financial institution serving members across North Carolina.

North Carolina Credit Union Division

This state agency is responsible for the oversight and regulation of credit unions in North Carolina.

The details

The loan arrangement functions by the credit union fronting capital to the executive to purchase a life insurance policy. Similar arrangements were used for former president James Hayes, who maintained a loan balance of $5.6 million as of mid-summer 2025.

The credit union issued an initial loan to James Hayes in 2022-23.
Leigh Brady received $1.2 million in compensation during 2024-25.
James Hayes held a loan balance of $5.6 million in mid-summer 2025.
The credit union reported over 3 million members in July 2026.
Members elected board candidates Clements, Stone, and Dillon in October 2026.

Culture Shift

This transaction reflects broader corporate governance practices within credit unions regarding executive compensation and retention. These structures mirror established industry trends where organizations leverage insurance products as an alternative to traditional retirement plans.

While the loan is a matter of corporate policy, it highlights the financial management of an institution that serves over 3 million members in North Carolina. Residents and credit union members may consider how executive compensation packages influence the operational costs and overall fiscal health of their financial providers.

The takeaway

Executive compensation in large credit unions often involves complex insurance arrangements rather than direct cash bonuses. Members can review public annual reports to understand how such financial programs align with the institution's stated fiscal goals.