With more than 50% of CEOs eligible to retire in the next 10 years, NCUA Chairman JoAnn Johnson called on credit unions to stress succession planning.
Johnson said she considers it "very sad" every time a NCUA approves the merger of two credit unions put into motion because the manager of one of the CUs is retiring and there was never any plan made for a replacement. Johnson said the same situation has developed at NCUA, which is scheduled to lose a number of key members of management to retirement in the next few years, and has no succession plan in place.
But the most overlooked aspect of succession planning, Johnson told NAFCU's Volunteers Conference, is replacing volunteers. "Public service is overlooked," she said. "If good people don't step up to do it, who are you leaving it to? Identify good people to step up when you leave your term."