The National Credit Union Administration has finalized a rule to improve board and executive succession planning within the credit union industry. This strategic move aims to curb the trend of mergers driven by technological stagnation and poor succession strategies, ensuring more credit unions maintain their independence and enhance their technological capabilities. By Ken McCarthy, Manager of marketing communications at Tyfone Credit unions are merging out of existence because of an inability to invest in technology, the National Credit Union Administration Board wrote when introducing its now finalized rule on board succession planning. The regulator now requires credit unions to establish succession planning for critical positions in their organizations. But it’s likely to have even wider effects, such as preserving more independent charters and shaking up the perspectives of those on credit union boards. “Voluntary mergers can be used to create economies of scale to offer more or ...
When BMI Federal Credit Union ($386.6M, Dublin, OH) faced the challenge of how to make the most out of board vacancies, it developed two programs geared toward facilitating a smooth succession and retaining the invaluable experience of long-time board members. The first program — an associate board member position — gives newcomers the opportunity to learn about credit union operations and board responsibilities before becoming a full-fledged board member while the second program — an emeritus board member position — allows experienced board members to stay involved and pass on important knowledge.
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