TEMPE, Ariz.–Tom Glatt, CEO of Continental FCU, knows many credit union leaders who believe a hostile takeover bid could never happen to them. Perhaps. But Glatt asks, ‘Why be unprepared?’ He offered the following advice to Credit Union Journal readers to build a firewall against hostile takeovers:
* Protect yourself as a credit union. Don’t lose focus on service to members; growth or ratios are not as important as a service to members.
Work on your relationship with your sponsor, SEG, or community. They are your partners and the key to your future success as an institution. Credit unions that have community sponsors need to spend time in the community. As CEO, Glatt spends a great deal of time with sponsors Continental and US Airways– that’s one of his primary roles.
* Review bylaws on an annual basis. Ensure that they are updated and in good condition. Find out how many members are needed to petition for special member meeting, or to have the board removed. This should be reviewed annually with an attorney.
* Develop a plan for investing excess capital back to membership. This is especially important if you have double digit net worth, as Continental had. The credit union’s 17% net worth was a bull’s eye for a takeover, according to Glatt. The plan should include how excess capital can be invested in technology, training, staff and branches.
* Develop the strategic plan. This is beyond the business plan, beyond 36 months, far down the road to make sure the business plan will happen. A strategic marketing plan along with a member communication plan tells the credit union story to members.
* Train CEO & executives in media relations. They will face reporters as the credit union becomes news. Designate one person to become the spokesperson. Glatt learned that there “was no such thing as off the record. If you don’t comment, there is an information void that will be filled, it is better to comment and get your views in the void; otherwise it will be filled with someone else’s views.”(c) 2008 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved.http://www.cujournal.com http://www.sourcemedia.com
