Credit union people are an eclectic bunch. I thinkthe importance of the not for profit philosophy contributes todiversity of the characters. When they're all in one area, such asan exhibit hall at a conference, the variety becomes morepronounced.

Several seasoned board members stopped by the Credit UnionTimes' booth at NAFCU's annual conference last week. One longtime board memberwho came to our booth discussed at length many issues du jour withme. He was very informed on matters ranging from the CFPB andcompliance to IT concerns. He was sharp and smart enough to knowwhat he didn't know and not too proud to admit it.

It seemed to me a few more younger board members than in thepast walked the exhibit halls.

Still others strolled down the rows of sponsors droppingbusiness cards and taking trinkets without even bothering to stopand find out what that vendor offers. It didn't matter because theygot their three-cent bottle opener or stress ball.

At both NAFCU's exhibit hall and CUNA's the week before, we gotlots of feedback on our two-part series regarding credit union directors that are paid. Some were appalled thatcredit union directors were taking money for their service. It'swrong for the philosophy and for the business. Others advocated forit, recognizing the work that directors put in and the risk thatthey take. There were a few that felt it was inappropriate or thatthe timing with the taxation push was inopportune. That last partis true, but our role is to report the news, and because of therecent legislation out of Washington State to allow compensation of board members, theissue is a highly timely one.

It is high time to at least get credit union stakeholdersdiscussing important strategic issues such as the compensation andquality of their boards of directors. Many credit unions won't evenimplement any kind of board or director assessment program becausethey avoid conflict at all costs. Some times facing conflict in adirect yet respectful manner is the only way to accomplishanything. And you may find you're not alone–others have the exactsame concerns that you do but also are too afraid of conflict tovoice them.

One of the arguments against the NCUA regulation regarding boardof director education was that the directors are “just volunteers.”We're not talking about volunteering to play with the kittens atthe local animal shelter. This is a highly regulated, rapidlychanging industry and the directors should act as and be treated assuch.

Credit union management is an interesting bunch, too. There arethe ones that prefer to run a tight, cost-efficient ship. Othersfollow the spend money to make money philosophy. Each can beequally successful depending upon the wants and needs of themembership.

A common complaint among the directors and management was thatcredit unions are being regulated out of business. A few years agothis was a common complaint among the small to mid-sized creditunions. The larger ones were able to absorb it as the cost of doingbusiness. Now, with the initial implementation of regulationscoming out of the Consumer Financial Protection Bureau, over andabove the NCUA and other regulators credit unions are accustomedto, even the larger credit unions are concerned.

Some CEOs want to ensure their boards are educated and engaged.Their boards make them better managers by providing strategicdirection and insight on behalf of the members. Others just like tokeep their directors in the dark; they'll just be in the way, nevermind that they are supposed to represent the membership.

Some credit unions go out of their way to attract as manymembers as possible to their annual meetings while others design itto attract a bare minimum.

The credit union community should revere, learn from andcelebrate its diversity. It reminds me of the USA Network tagline:Characters Welcome.

Sarah Snell Cooke
Publisher/Editor in Chief
[email protected]