LAS VEGAS - Safety and soundness questions spotlighted by the IndyMac Bank failure as well as the more typical governance issues sparked passionate discussion at a recent conference for credit union directors, here.
Ben Rogers, chairman of the National Directors' Convention, told CU Journal last month's failure of IndyMac was one of the most buzz-worthy items. In addition, he said term limits for board members and the need to attract younger blood-both to boards and to the CUs themselves-were hot-button issues.
"We held a deposit growth session...and, without exception, everybody said they are getting calls about IndyMac and the need for share insurance," Rogers reported. "Everybody has seen an influx in deposits as people flee the stock market. Of course, that money can go back out just as quickly."
As would be expected at a convention of CU directors, broaching the idea of term limits for board members touches raw nerves. One director from a Michigan credit union noted, "It is difficult to find volunteers to serve on boards. If we had term limits, I don't know what we would do." Assessed Rogers: "What credit unions are doing to plan for board turnover is very important. We know we need to be thinking about what comes next-both in terms of governance and board composition."
Rogers said attendees at a term limits session were told to think of where the next generation of board members is going to come from. He said some CUs are implementing "advisory board member" programs, a sort-of "board-member-in-training" approach. These people attend board meetings, but do not vote.
"When a position opens on the board, these advisory members are familiar with the issues facing the credit union," he said.
"We talk about young adults and credit unions, especially as it relates to the board," Rogers continued. "Credit unions need to discuss how to get younger members involved, and how to market to them."
The number of CU mergers is down this year, Rogers said, but the topic drew enough interest to make a merger discussion the best-attended pre-conference session.
"Nearly every credit union has been approached about a merger or has discussed mergers at planning retreats," he said. "The fiduciary duty involved is important, even if the credit union is not going to merge tomorrow."(c) 2008 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved.http://www.cujournal.com/ http://www.sourcemedia.com/
