Skip to main content

Lack of Young People on Boards ?

Editor's Note: This piece was originally published on ChipFilson.com

By Chip Filson
Filson, Chip

This observation on America’s credit unions is from Leo Sammallahti​, Marketing Manager, for the Coop Exchange.  Leo lives  in Finland.

“When I first read about a “Credit Union Governance Modernization Act” I was optimistic that this would help ensure there is more democratic accountability in the form of open and contested elections. Unfortunately this seems not be the case.  Rather the focus is making expelling credit union members easier.

“I totally support being able to expel abusive and violent members to protect the staff.  If there has been cases where this has been made too difficult they should be tackled with better legislation. If the new act is limited to cases like this, I totally support it.

“However, I’m concerned whether the act could be used by incumbents to solidify their positions by expelling critical members seeking to challenge them? I’m not saying this is the case, just interested whether such risk is involved. I also question the language used in it, talking about how credit unions should have more control over their members. Shouldn’t it be the other way around–how to ensure members have more control over their credit unions?

“I believe that perhaps more than ever,  American democracy would benefit from revitalization of credit union democracy. Instead of focusing on polarizing politics, credit unions could foster vibrant democratic practices rooted in their local communities, without party political point scoring and division.

We also need to encourage young people with skills and ideas to stand for the board for this to work out. This is the most educated generation in the history of the country, so I’m sure there are more than enough qualified candidates to stand for the board.”

A Second Observation

Apropos to Leo’s last comment, last week I received the following email from a senior credit union employee:

“CU’s are supposed to be democratically governed through the election of member chosen representatives. Due to  a possible age-driven mass exodus of board members, it appears that replacement of these directors is a coming problem.

“Director replacements are full of issues such as the CEO filtering and controlling who gets nominated; or the  nominating committees filtering applicants, NOT by qualifications, but by other unknown criteria. And anyone not nominated must solicit petitions to get on the ballot, an almost  impossible process that is frankly a JOKE.

“I am mentoring a midlevel credit union leader in (state).  He has been trying to offer his youthful vision and services  to a credit union board by getting on the ballot.  The push back he is receiving from many angles is sad and upsetting to me.  This young man could add significant value.”

My Comment

Are these two observations on the lack of young people on boards just a coincidence?   Or is this  generational absence in credit union governance glaringly obvious to anyone taking note?

Chip Filson is a co-founder of Callahan & Associates and well known within credit unions as an author, frequent speaker, and consultant. Filson also previously served as president of the Central Liquidity Facility (CLF) and Director of the Office of Programs at NCUA. For more info: www.chipfilson.com
 

Comments

Post a Comment

Please no profanity or political comments.

Popular posts from this blog

Birth of the Weekend

  Birth of the Weekend   Today marks 100 years since Ford Motor Company became one of the first American companies to officially adopt the five-day, 40-hour workweek for factory workers, a decision that reshaped work-life balance. Henry Ford’s idea to eliminate Saturday from the workweek initially met hesitation from some hourly workers worried about reduced pay. However, his daily wages of $5 to $6—roughly double the industry average—helped to ease concerns ( read 1920s reactions ). Ford reportedly redirected Saturday wages to hire thousands more people for Monday through Friday shifts, reducing unemployment. The move also boosted productivity, reduced turnover, strengthened morale, and gave workers more leisure time, some of which they spent buying and traveling in Ford cars.  The US formally codified the 40-hour workweek in 1940, mandating overtime pay for hourly employees. More recently, momentum has grown aro...
Post a Comment
Read Complete Article HERE>»

Fed Keeps Interest Rates on Hold in Split Decision at Final Meeting of Powell Era

  By  Keith Griffith April 29, 2026 In an unexpectedly close split decision,  Federal Reserve policymakers  have decided to keep interest rates on pause in what is likely to be the final meeting under the supervision of Fed Chair  Jerome Powell . Powell joined the 8-4 majority on the  Federal Open Market Committee  to vote in favor of leaving the  federal funds rate unchanged  at Wednesday's meeting in Washington, DC, judging inflation as running too hot to justify a rate cut. At a press conference after the vote, Powell revealed that he will remain on the board of governors as a regular member after his term as chairman ends, saying: "After my term as chair ends on May 15, I will continue to serve as a governor for a period of time to be determined. I plan to keep a low profile as a governor. There is only ever one chair of the Federal Reserve Board." Read the complete story here.
Post a Comment
Read Complete Article HERE>»

How did the Supreme Court become so powerful?

  A court designed to be the least powerful branch became one of the most influential institutions in history. 1440 Explores host Sony Kassam dives inside the Supreme Court of the United States, with help from Yale Law professor Akhil Reed Amar, to uncover how it gained extraordinary authority, what really happens behind closed doors, and why its power has become one of the most fiercely contested questions in modern democracy. ================================================= Remember, you're not alone with  NCOFCU.org Join/Upgrade Check out some of NCOFCU's additional features: Annual Conference First Responder Credit Union Academy Financial Literacy Podcasts YouTube Mini's Advocacy  
Post a Comment
Read Complete Article HERE>»

Syracuse Fire Department Credit Union.

  ================================================= Remember, you're not alone with  NCOFCU.org Join/Upgrade Check out some of NCOFCU's additional features: Annual Conference First Responder Credit Union Academy Financial Literacy Podcasts YouTube Mini's Advocacy  
Post a Comment
Read Complete Article HERE>»

Boston Firefighters Credit Union Taps Tech Leader Elizabeth Adcock to Drive Digital Future

  Boston Firefighters Credit Union is bringing in some serious digital firepower. The organization just named Elizabeth Adcock as its new Chief Digital & Information Officer—a role that’s all about steering the credit union into a more tech-savvy, member-focused future. If you’re wondering why this matters, consider the timing. BFCU is in the middle of a major digital evolution, expanding its reach across Massachusetts while staying true to its core mission: serving first responders and their families. Enter Adcock, a technology executive with a track record of turning complex tech challenges into real-world wins. “I’m thrilled to welcome Elizabeth as our Chief Digital & Information Officer,” said Danielle Milner, President & CEO of Boston Firefighters Credit Union. “She is the rare combination of strategic vision, digital expertise, and human-centered leadership. Paired with her deep commitment to bring greater innovation to first responders and their families, her ser...
Post a Comment
Read Complete Article HERE>»

How's Your Posture?

      April Blog   How's Your Posture?   Scenario Planning Is Dead! Long Live Strategic Posture. by That One Consultant You Hired and Then Ignored   Somewhere in your credi...
Post a Comment
Read Complete Article HERE>»

IRS Reporting Proposal Scaled Back, but Still 'Flawed'

On Tuesday, Senate Democrats distributed an update to the controversial IRS reporting requirements that the credit union industry has been very vocally opposed to since it was unveiled in late June. According to the updated proposal rolled out Tuesday, it would require financial institutions to report inflows and outflows of personal and business accounts, as well as transfers between accounts of the same owner, if it is more than $10,000 per year. The proposal floating around for the past four months had the threshold at $600 per year. The requirements do not apply to payroll deposits for wages or to those receiving Social Security benefits. In response to the updated IRS reporting proposal, NAFCU President/CEO Dan Berger said, “It has become abundantly clear that Americans oppose the IRS obtaining additional information on their financial accounts. The updated plan is nothing more than window dressing in an attempt to shore up support for a flawed proposal. Instead of creating financ...
Post a Comment
Read Complete Article HERE>»

Ransomware: 'It's A Growing Issue'

MADISON, Wis.—Ransomware attacks, already a quiet concern that has been growing among credit unions, are expected to dramatically increase this year—with one analyst saying there is “no silver bullet” to prevent the threat. Ransomware is a type of malicious software designed to block access to a computer system or PC until a sum of money is paid. In the case of a financial institution, crooks first use the malware to encrypt the contents of the FI’s data and then extract a ransom in exchange for decrypting the information and allowing the victim to regain access. It’s an issue, according to one regulator source who asked for anonymity that has been growing within credit unions, many of which have paid ransoms to regain access to their data and have chosen not to speaking publicly about the crime. “This has become a huge problem,” said Ken Otsuka, senior consultant in CUNA Mutual Group’s risk management department, adding that CUNA Mutual Group’s cyber liability coverage data d...
Post a Comment
Read Complete Article HERE>»

And The Forecast For 2017 Is?

Steven Rick who will be speaking to us in Charlotte, has made the following predictions for 2017. MADISON, Wis. – Increases in housing construction and rising oil prices will drive higher economic growth higher next year, while auto sales should remain robust, according to CUNA Mutual’s chief economist. Steven Rick said credit unions next year can expect a “slight acceleration” in the economy with no signs of a recession until late 2018—good news for CUs looking to expand their reach and services, he said. Rick is further predicting the Fed will boost rates once this year and three times in 2017. “We’re forecasting a modest acceleration in economic growth to 2.4% in 2017 from this year’s very slow 1.6%,” Rick told attendees of CUNA Mutual Group’s seventh annual Discovery Conference. “An inventory correction, reduced energy sector investment due to falling oil prices, and the negative impact of the rising dollar on our exports all contributed to the U.S. economy’s slower gro...
Post a Comment
Read Complete Article HERE>»

Hood: Credit unions are safe and sound

Hood’s term on the NCUA Board will expire in August.  NCUA Board Member Rodney Hood appeared via live stream with Brad Barnes, Air Academy Credit Union, and Amy McGraw, Tropical Financial Credit Union. The regulator lauds strong membership, asset, and loan growth. Despite recent headwinds, including high-profile bank failures, the credit union movement is still safe and sound, says Rodney Hood, NCUA board member, and immediate past chairman. “We’re not seeing the contagion like at other financial institutions,” says Hood, who addressed the 2023 CUNA Finance Council Conference Monday via live stream. The Silicon Valley Bank (SVB) crisis was one of confidence, he says. Ninety percent of SVB’s deposits were uninsured. In comparison, more than 91% of credit union deposits are insured. “We don’t have those entanglements,” Hood says. “That bodes well for our future.”  He lauded America’s 4,800 credit unions for growing membership to 135 million, assets to $2.2 trill...
Post a Comment
Read Complete Article HERE>»