Study Suggests CU Board Selection PlaguedBy Cronyism
MADISON, Wis. - (10/18/05) -- A new study released by the FileneResearch Institute found that credit unions mostly recruit newboard members through an existing volunteer network and word ofmouth, using nominating committees often dominated by existingdirectors. As a result, the board recruitment yields candidates whomirror the views and attitudes of current directors, according tothe study, called Recruitment and Selection Practices of CreditUnion Boards. The survey of 672 executives and 379 directors at 713credit unions found limited use of job descriptions for boardmembers; limited use of skill profiles to select members; and fewstrategies in place to ensure diversity of new directors. Theauthors recommend several steps to improve the selection process:expand elections to open the participation among more members;adopt a more comprehensive recruitment system; develop a profile ofdirector competencies; and consider board term limits.