How CU Boards Are Planning For Their Future
August 11, 2014 1:24 PM
LAS VEGASCredit union boards must always have an eye on succession plans for both themselves and for upper management.
During the recent Directors and CEOs Leadership Convention here (for years known simply as the Directors' Convention), attendees discussed how their CUs are looking ahead.
Ray Leyva, certified credit union volunteer and board chairman of POPA Federal Credit Union in Cerritos, Calif.: "We have a pretty robust training program for management. We get everyone involved in Western CUNA Management School, usually one or two people every year. That gives us people who are ready to step up when someone else retires or leaves. We are trying to get the board certified through CUNA's training program. I am a [CCUV], and by next year all five board members will be certified. Our supervisory committee serves as a feeder program for the board."
Greg Smith, CCUV and chairman of the supervisory committee at Schools Financial Credit Union in Sacramento, Calif.: "We have a succession plan in place for management but not for the board. We do have a member-at-large program for members who want to volunteer. If approved, these people are assigned to committees. It lets people get familiar with the credit union. That is where I came from. I served on all the committees. Some of our board members come from the member-at-large program before they are elected. Some simply are elected.
All committee members are invited to all board meetings. They can participate in discussions, but they cannot vote."
Earl Bell, chairman of the audit committee at the University of Michigan Credit Union in Ann Arbor.: "We have four associate directors right now, and we keep at least two associate directors on hand so if a director leaves we have someone who is experienced as a replacement. Getting people to join our board is not difficult because people are passionate about the university and want to be involved in the credit union. Typically, people serve on committees, then become an associate director, and then they become a full board member."
Lisa Moore, chairman of the board, Arlington (Va.) Community Federal Credit Union: "We have a succession plan for management, of course, but filling slots on the board is challenging. People serve on the supervisory committee first, so the real challenge is on the supervisory level. We have a solid, seven-person board right now. We started as a teachers and county credit union, then expanded to a community charter. Right now our board is nearly all teachers or county workers, so we would like to have young people, perhaps college students, serve as associate directors to bring in new voices."
Joe Neuhof, director of Coloramo Federal Credit Union in Grand Junction, Colo.: "I am a new director on the board. I was a member of the credit union and had worked with one of the board members in another context. The board had a goal to get younger so I was recruited. I have a background in marketing and the credit union wanted someone to tell the story. I can see why it is difficult to recruit board members. It is a lot of time for a young professional who has a family to commit. Right now our board is asking the right questions about preparing for the future, but we need answers. There is not a formal succession program in place, but we need one."
