LAS VEGAS - The long-simmering debate about giving volunteerdirectors a wider role in policy and decision-making in majorcredit union trade organizations got a vocal - and surprise -airing during NAFCU's annual conference here. The complaints abouta lack of "proportional" representation on the boards of NAFCU andCUNA-and to a lesser degree CUES-surfaced during the closingminutes of NAFCU's annual business meeting July 15 from a group ofWashington, D.C. delegates warning that a "dialogue" needed tobegin on what they said was a restrictive "inclusive environment"geared to CEOs. "The NAFCU board has both the opportunity andresponsibility to address this concern before it becomes aproblem," cautioned Marlene E. Schwartz, chairman of StateDepartment FCU, Alexandria, Va. who spoke just as the meeting wasabout to adjourn. Later during an impromptu meeting with reporters,delegate Robert D. Scott, vice chairman of Pentagon FCU, said thereare many directors including those that belong to the Credit UnionDirectors Association who share his views about increasing the"percentage" of volunteer reps at senior level associationpositions. "I realize that all volunteers do not necessarily havethe desire or the time to serve outside their own credit union, butbelieve me there are more than enough who are willing to serve inthose capacities," commented Scott, who has long been active inmember/employee financial education and is chairman of the PentagonFCU Foundation. Both Schwartz and Scott ran for two open seats onthe 2005-2006 NAFCU Board in January and lost with notices of theirdefeat received in May. A third Washington delegate voicing supportfor representation at the NAFCU meeting was Philip E. Corolan,chairman of Treasury Department FCU. In speaking with reporters,both Scott and Schwartz singled out NAFCU as having what they saidwas a more forward looking policy on representation since thatgroup currently has an elected volunteer board member, DavidGilbert, chairman of Aberdeen Proving FCU in Aberdeen, Md. who hasserved seven years. Also on the NAFCU Board is Brian L. McDonnell,who retired in December as CEO of Navy FCU, and is now listed as adirector-at-large. For their part, officials of NAFCU and CUNA saidthey have strived for years to promote an active volunteer corps inpolicymaking and leadership roles. CUES said it has used focusgroups, advisory committees and surveys to help make "our policymaking body, the CUES Board of Directors, aware of director needs."A spokesman for CUNA said volunteers have served on its board inthe past and are always welcome to run but sometimes they choosenot to because they lack the required time and commitment neededdue to existing volunteer chores. Currently running for a CUNADistrict l, Class B seat is Joseph Poerio, a director of SuffolkFCU in Medford, N.Y. filling a vacancy left by John Prumo, CEO ofG.P.O FCU in New Hartford, N.Y. Barb Kachelski, senior vicepresident of membership and chief information officer at CUES, saidits bylaws stipulate that only voting members can serve on itsboard and must be CEOs, "their vice presidents" or "seniormanagement employees" working at CUs or at wholly-ownedsubsidiaries. In vying for a NAFCU director's seat - and having tosend out 800 e-mails to potential voters - Scott of Pentagon FCUsaid he was realistic about his chances of winning an uphill battleconsidering CEOs "get the recognition" and are bound to gather morevotes. "Just look at Credit Union Times and you constantly see thenames of CEOs spread all over, but you don't read a lot of stuffabout volunteers," said Scott. Scott, a director of the CreditUnion Directors Association, said that group-with a membership of50 - was started with the goal of improving the volunteer presenceat the state and national level of trade groups and shares ideasthrough monthly teleconference sessions. CUDA also has a Web site,www.cudaonline.org. Both Scott and Schwartz stressed their respectfor both NAFCU and CUNA as highly effective trade organizationswith Schwartz maintaining, "I believe we need to work within thesewell-established structures to expand volunteer representation.""With the number of credit unions shrinking, there are fewer of usto support these organizations so our support is more critical,"she said. At the same time, Schwartz said she has requested thetopic of volunteer representation at the national level "be put onthe agenda" at the National Association of Credit Union Chairmenmeeting in Savannah, Ga. in October. In support of CUDA, Scottadded, "while I understand that Marlene does not agree that a neworganization is needed, we are not all Chairs and therefore grantedaccess to forums such as is provided by NACUC." On a more immediatenote, the representation issue could conceivably come up at theNational Directors Convention Aug. 2-5 also in Las Vegas. BothScott and Schwartz said that because of schedule conflicts, theywould be unable to attend that event. As for CUNA, Schwartz ofState Department said she has worked for years with staffers toprovide better networking opportunities for volunteers anddescribed for reporters heated discussions with CUNA CEO Dan Micaabout the issue. Still, Schwartz said she is "a strong supporter ofthe roundtable for board leaders. It is a great start but it isjust a start." The State Department FCU chairman also stressed thatvolunteer representation is hardly a new area of concern since shehas been lobbying for it for many years. While some might tie heradvocacy "to the recent election" at NAFCU, "those who know me knowthis is not the case." While NAFCU officials appeared taken offguard at the business meeting, Fred Becker, president and CEO,pointed out to reporters the various programs NAFCU has geared tosupporting volunteer views including sessions at the Las Vegasconference. On July 13 were the concurrent Chairs Caucus and theManagement Forum. Both Scott and Schwartz said their respectiveCEOs have been supportive of their NAFCU roles. In a statement,Frank R. Pollack, Pentagon president, said "we see no reason thatmembers of our Board should not be active in our trade groups andDirector Scott has indicated a desire to do so," continued Pollack."While this may not be feasible for all credit unions, we arefortunate that we do have a director with the time and ability toserve." Jan Roche, president and CEO of State Department, saidsimply "I completely echo Frank's views." [email protected]

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