Business Leader Highlights CU Governance Weaknesses
ATLANTIC CITY, N.J. -- Corporate governance consultant Stuart Levine picked apart problems with credit union governance through a series of interactive questions.
Levine's first question asked whether credit unions in the audience had a succession plan in place for the board and CEO. Of the credit union executives and volunteers in the audience, who responded via electronic transmitters, 27% said yes, they had both. Nearly half, 47%, responded that they had one but not the other. Fifteen percent of credit unions were working on them, but had nothing in place at the time. Eleven percent simply answered neither.
Next, credit unions answered whether they had an appropriate board member criteria selection process in place. Forty-two percent answered yes, while 15% said they were working on it, and another 43% replied no.
When it came to reviewing governance practices and other related policies annually, 34% said yes to all of the above while a nearly equal amount, 32%, said they did not review any of the policies listed annually. One quarter (24%) said they reviewed two out of the three and 13% said they reviewed one of the three.