HIGHSTOWN, N.J. -- Citing the need to streamline its governance in line with demographics and geography, the New Jersey Credit Union League announced last week it has proposed to its membership a restructuring of its board and election process.
"You can call it a re-tuning," explained the league's chairman, Steve Schlundt, who also is president/CEO of Atlantic City Firemen's CU.
Under the governance package to be formally voted on this September during the league's annual Atlantic City meeting, the board size will be reduced from 15 to nine members with future election of directors based on a tiered system of asset size.
Also under the plan, league board members would have to be CEOs or board members eliminating a practice of simply electing senior managers as advanced by individual CUs. Term limits have also been set allowing board members to serve three consecutive, three-year terms.
The governance plan is the work of a 14-member governance task force put together last year by the league as the trade group over the years has struggled with its organizational structure and top management.
Schlundt said the league reorganization is well overdue "since the last time this was done was 12-13 years ago," noting the major changes occurring in the industry as well as what the league calls challenges.
Paul Gentile, the president/CEO of the league, said the New Jersey moves are in line with what has occurred in league governance in Florida and Pennsylvania as examples.
"This is all pretty straightforward and demonstrates how we are adapting to changes in the industry," said Gentile.
Schlundt said all of the proposed changes now being reviewed by the membership require a formal vote on the new bylaws and that will come at the Sept. 21-23 meeting in Atlantic City.
--jrubenstein@cutimes.com
