If the NCUA's proposed corporate regulations were to take effect as written, the $4 billion Mid-Atlantic Corporate Federal Credit Union would have to replace its entire board.
The changes to Part 704 include a requirement that corporate directors hold a chief executive officer, chief financial officer, or chief operating officer position at a member credit union or member entity.
That would disqualify chairman of the board Richard Burtnett, who is a CPA, said Leigh Philibosian, Mid-Atlantic's senior vice president of marketing. Additionally, the proposed regs would impose a six-year limit on corporate director service, which would prevent Mid-Atlantic's existing volunteers from running for another term.
"We have a long-tenured board, which includes some credit union volunteers as well as CEOs, and I think they've provided both stability and a unique perspective," Philibosian said.
Philibosian said she favors term limits in general, but said Mid-Atlantic feels it takes one full term on a board to fully understand the "inner workings" of a corporate. A six-year limit could introduce instability into a corporate board, she said, because volunteers might feel pressured to "push agendas through quickly without performing full due diligence."
Constitution Corporate Federal Credit Union CEO Bob Nealon said his volunteers are all credit union CEOs, but said proposed term limits would also result in substantial turnover for Constitution Corp's board.