SAN FRANCISCO - When it comes to board term limits, PatelcoCredit Union Succession Committee Chair Carol Highton knows all toowell that they shouldn't be set in stone. "We all thoughtinstituting term limits back in 1997 was such a great idea and wewere all behind it. We didn't really think about how over a fiveyear period, transitioning board members off every year, it wouldbe difficult to find really good new board members," said Highton."We were looking at a situation in 2010 that our board would onlyhave two `seasoned' board members, who would've been only two tothree years into it, and the nine other board members would be new-the credit union would be in complete turmoil." Highton says itwasn't an easy decision for the board to reach but changes had tobe made which went into effect only last year basically setting theterm limit to age 70 or after serving five three-year terms,whichever comes first. "We still have a strong belief that peopleneed to retire from the board, they can't get a position and stayforever - especially here," said Highton. "The changes were made tostagger the limits and ensure the baton is passed smoothly andstrategically." Highton says initially the greatest challenge wasgetting everyone to agree to the change. Some wanted to keep theexisting term limits and felt the credit union would just hunkerdown when the time came. Eventually everyone realized that giventhe potential future, it was the right decision to make for thecredit union's continued success in the future. To address theissue of finding the right board replacement candidates thesuccession committee was established. "We made a concentratedeffort to identify just what are the elements of board memberswe're looking for and searched through our 1,400-plus SEGs,narrowed it down to the top 200 and set out to find the potentialboard candidates from within," said Highton. "As we bring newpeople on, the outgoing board members take them under their wingthrough a mentorship program." Highton says another challenge is indiversity and finding the right mix of members who can work welltogether. Potential members are asked to complete an extensiveapplication, provide their resume and a letter of intent. Inaddition, they undergo a background check and interviews arescheduled with the nominating and succession committees. Candidatesthat make the cut are appointed to give them an opportunity tolearn how the board operates and then at the following annualmeeting they are renominated. "We consider it a honeymoon trialperiod for the candidates and the board. Personality is veryimportant so if they seem to fit in or bring something more thenthey are usually re-elected," said Highton. "The mentoring programalso helps in that the new member can access this person who isspecifically responsible for guiding them and helping them feelmore comfortable." Highton adds that term limits are a step in apositive direction for the credit union. "I think credit unionshave to recognize that if they are honest, even if the currentboard is great, there is always something that can be improved,"said Highton. "In a regular job people change positions andresponsibilities the longer they stay. With the credit unionindustry moving as quickly as it has been it makes sense to havefresh blood to offer new perspectives-it boils down to balance."[email protected]