GRAPEVINE, Texas-Texas CUs have approved a plan to shrink the league board to 12 members, a move it projects will save at least $50,000 annually. The vote came during the league's annual meeting here.
Under the new board structure, the state is being divided into four regions, each of which will have one member drawn from each of three asset categories: $50 million and less; $50 million to $250 million, and more than $250 million. Randy Smith, CEO of Randolph Brooks FCU and chairman of the Corporate Governance Task Force, said the asset sizes were chosen to reflect the growth expected over the next decades rather than representing current sizes. Board members are to serve three-year rather than two-year terms, Smith said, because of the time it takes to build expertise.
The task force declined to recommend putting term limits in place. "We talked at length about whether we should implement term limits," Smith said. "We heard a lot of pros and cons and came down on the side of no term limits. We have not head a problem at this league with homesteaders who serve on the board forever and ever." With the smaller board will also come a shrinking of the executive committee to five members from seven. League subsidiary Credit Union Resources will reduce its board members to seven from 11. The plan is to go into effect in 2012.
