TAMPA, Fla. — Bill Cheney's decision to leave CUNA to lead SchoolsFirst FCU not only surprised the credit union community, it also has some executives wondering how the leadership change will impact the trade association's work this year, particularly around the taxation fight.
Several CEOs spoke with Credit Union Journal shortly after CUNA announced Cheney's departure, sharing their reactions and more. Some gave Cheney credit for good work, while others raised questions about what CUNA has delivered to the community since Cheney became president and CEO four years ago.
Tom Dorety, CEO of the $5.5 billion Suncoast CU, said the move was a great decision for Cheney and the Santa Ana-based SchoolsFirst.
"I guess Bill wants to get back to running a credit union and there is no better opportunity than SchoolsFirst," Dorety said. "The credit union is getting someone with a wealth of credit union knowledge and experience."
But it's not a dire situation for CUNA, according to Dorety.
"You always look at these things as opportunities. Bill did a good job, but now that he has made his decision you have to put everything together and do your best. CUNA will find the right person to lead the association forward," he said.
Chell Callaway, CEO at the $50 million Kellogg Company Employees FCU, in Omaha, Neb., hopes Cheney's departure does not derail efforts by the trade association to examine the CUNA/league structure,
"His departure was so sudden," said Callaway. "When I saw the news it kind of threw up a red flag to me that maybe this effort to look at CUNA's structure may fall by the wayside," Callaway said. "I hope whoever takes Bill Cheney's place has this in their strategic plans to address."
He also noted that CUNA Chair Dennis Pierce and the board of directors will be reviewing the organization's structure as well as its governance and that the process is currently moving forward.
Questioning CUNA's Effectiveness
But many within the CU community say they want more from the trade association. Some CEOs have been questioning CUNA's effectiveness in meeting their lobbying needs in the past few years — especially around member business lending — as well as providing services to CUs of all sizes.
One CU Journal reader expressed dissatisfaction with Cheney's tenure at CUNA, posting a comment on
Bernie McLaughlin, CEO of the $722 million Point Breeze CU in Hunt Valley, Md., has a different perspective, and said he also has a great deal of respect for Cheney and his accomplishments at the national trade association.
"Bill was doing an excellent job," said McLaughlin, who was surprised by Cheney's decision. "We all just 'Hiked the Hill' at GAC and were very effective with our 'Don't Tax My Credit Union' message. We obviously got that message across to Congress, we had a great GAC and Cheney was leading the pack."
That leaves McLaughlin wondering how the fight against CU taxation could be impacted by a change in CUNA leadership. He also wonders about how Cheney and CUNA — having to switch gears over the last year-and-a-half to focus credit unions on taxation and away from member business lending — could have affected the CUNA president.
"I don't want to speculate why Bill is leaving, but it must have been difficult to change gears like that," said McLaughlin. "Whoever comes in after Bill has big shoes to fill."
Jim Blaine, CEO of the $27 billion State Employees' Credit Union in Raleigh, N.C.,
Blaine said, however, that he was not shocked Cheney would go for the opportunity at SchoolsFirst. "That is a terrific job. Bill has the experience and has lived in California, so I can see why he made the decision."
'Fine Leader' And 'Fine Man'
He added that he has known Cheney for a long time and called him a "fine leader and a fine man. He was making good progress at CUNA."
Cheney's departure could slightly impact CUNA's advocacy efforts due to the "lull" between when a leader leaves and a new chief comes aboard and gets up to speed, according to Blaine. "But CUNA has a lot of lobbying expertise on staff, so I am sure this changeover won't have that much of an effect," he added.
Sundie Seefried, CEO of the $261 million Partner Colorado CU in Arvada, Colo., sees Cheney's move as good for the CEO and his family.
"Bill has done a great job," Seefried said. "I am confident the CUNA board will find a new president to continue to protect and promote the credit union industry."
Dale Verderano, CEO of the $144 million Matadors Community CU, Chatsworth, Calif., predicted that Cheney a will do a good job leading SFFCU.
"He is a good thinker and people like him," Verderano noted.
But he added that Cheney's departure has some in the community wondering about his reasons, especially with his departure following on the heels of the
"Perhaps [Cheney] wanted to return to California and SchoolsFirst can afford to provide him with a good compensation package," said Verderano. "After all, SchoolsFirst is no small potatoes."
Verderano acknowledged he is "not a big fan" of CUNA, NAFCU or the leagues.
"They all do a good job in various areas, but as a whole, I feel the annual fees that credit unions pay to these organizations do not represent the benefits they receive," he said. "I have always said that the reduction of credit unions across the country and consolidation of leagues should cause credit unions to stop and think about where they will be in the future and how trade organizations should discuss this issue. I do not feel Bill discussed this issue much."
Verderano added that under Cheney's direction CUNA's communications efforts focused too much on battling banks and not enough on explaining the CU difference.
"I think CUNA and other trade organizations fear banks more than they should," he added.
