CO-CEOs 1 Small CU's Succession Planning Solution

By Ray Birch

ROANOKE, Va.—Is an answer to the succession planning problem at small credit unions creating "co-CEO" positions?

One $103-million credit union that has two chief executive officers believes it is a solution for a number of small shops that lack a succession plan for their leader.

Roanoke Valley Community CU is led by Pam Duke and Lauren Whitmire. The co-bosses spoke with CUToday.info about how having a small team leading the organization has made it more successful and the job of running the show easier.

"As I am heading towards retirement, I wanted to make sure we had a succession plan in place for this credit union," said Duke, who is 61. "In the credit union movement, generally, it's difficult to replace CEOs at small credit unions. I've been here 16 years, and Lauren has been here 14. We wanted to make sure this credit union continues on, even if she or I would leave."

Duke explained that her focus at RVCU is on the lending side, operations, and compliance. Whitmire is responsible for accounting and also shares operations responsibilities with Duke.

As CUToday.info has extensively reported, lack of succession planning is a problem with smaller credit unions and is often a reason small shops merge out when the CEO retires.

Takes Special Twosome

"This is a good way for smaller credit unions to approach succession planning, having co-CEOs for a number of years," Duke said. "This is a good approach, we believe. However, it takes a special twosome to be able to do this. We didn't go into this haphazardly. We thought it through and discussed it multiple times between each other."

The co-leaders said they recognize the difficult job a small credit union CEO has guiding a small organization and also keeping up with daily tasks.

Lauren Whitmire (L) and Pam Duke.

"It's tough when you are the sole person running the show, wearing so many hats," Duke said. "Laurie and I had to step back and take a different viewpoint of our CEO roles. And that is: You are who I am, and I am who you are. We are a true pair. We're no longer a me, we are a we."

Duke said she and Whitmire, who is 41, discussed the idea for weeks more than a year ago before presenting the idea to their board, which immediately approved the new positions.

"We were very conscientious about where this was going to go, how this was going to work," Whitmire said. "We took this on still continuing to do the roles that we had previously performed. We hope that eventually we can move other people into other positions that will change some of (our workload). And that will give other individuals an opportunity to move up within the credit union. We see this as an opportunity for both of us to be able to move this credit union forward and have an excellent succession plan in place."

COO Helping

RVCU recently established a COO position, which has been filled by Scott Ruhlman.

Asked if the credit union would continue with co-CEOs if one of the current leaders left or retired, Whitmire said that would be a decision made in the future.

"We'll make that decision when the time comes. But it's very possible we could continue with co-CEOs," she said. "But, again, it's one of those decisions we will make when we have to cross that bridge."

Can a small CU with 30 total employees afford two CEOs?

"When we became CEOs, when I did early in 2023 and Lauren did later that year, we never relinquished any of our previous duties and roles," Duke explained. "For example, I'm still working in lending. I'm still in compliance. I'm still in operations. Lauren is still in accounting and investing and in operations. But Scott, our COO, is acclimating himself into his position. And with time, hopefully some more duties can be removed from our plates and added to his."

Whitmire said RVCU is "getting the best of all worlds" with co-CEOs.

"We're getting a director of lending, a CFO, a compliance person, accounting person, operations professionals…," she said.

The CU almost doubled its net income in 2023 ($1.7 million) over 2022, and is on track to post the same annual total this year, according to Call Report data. Net worth has substantially grown in the last year to 13.76%. ROAA is 1.51%.

Both Whitmire and Duke believe it is easier to run the credit union with two leaders.

"The burden can be heavy when it's carried by just one person," Duke said. "So, this working situation helps with that a lot. I also think we make better decisions as a team, than as individuals. My decision or my opinions are not always correct, and the same with Lauren. We listen to each other's opinions, step away, take a little bit of time, come back together and rediscuss things and come to a better decision together. I think that's what makes us a good team. We've worked together for multiple years before we become co-CEOs. That has helped a lot. So, maybe this is not for every credit union, but it's doing really well for us."

For small credit unions struggling with succession planning, the two leaders offered some advice.

"You don't always have to have one specified person to be CEO," Duke said. "Take yourself out of that box and see how you can share those burdens with other functions within the credit union. You're going to get more bang for your buck, and it might keep you away from a merger."

"The team aspect is a huge contributor to our CU's success," said Whitmire. "Add to that credit unions were built on wanting to promote from within and grow from within. Consider giving those employees, who have some years at the credit union under their belts and the knowledge the opportunity to assist in driving the credit union forward. This is a great opportunity for them—being a 'we' and not a 'me.'"