Reaching inside the credit union movement following the tenureof a prominent outsider, CUNA last week named California-NevadaCredit Union League President Bill Cheney as its new leader.

Cheney, who will succeed Dan Mica, CUNA CEO since 1996, has ledthe league since March 2006. Before that he was president/CEO ofXerox Federal Credit Union and was executive vice president ofSecurity Service Federal Credit Union. He was on the board of U.S.Central Federal Credit Union at the time of its conservatorshiplast year and was on the board of Western Corporate Federal CreditUnion from 1999 to 2005.

He has been named a defendant in two lawsuits in connection withhis tenure on the boards of both corporate credit unions. The suitagainst U.S. Central alleges securities fraud and will be tried infederal court in Alabama this summer. The suit against WesCorpdirectors alleges negligence and breach of fiduciaryresponsibility. That litigation is pending in the state court inCalifornia.

The 49-year old Texas native said that while the economic andpolitical environments pose many challenges for the industry, hewelcomes the opportunity to help it rethink its vision.

“This is a good chance to step back and work with the board andsee what direction we want to take things. The recent past has beendifficult for CUNA and credit unions, but I am optimistic about thefuture,” he told Credit Union Times.

CUNA declined to reveal Cheney's salary and benefit package. Butin 2008, the last year for which CUNA has filed a report with IRS,Mica had a base salary and fringe benefits totaling $810,528; hisbonus and incentive compensation was $667,393; his car allowancewas $26,617; and his deferred compensation was $349,039.

John Dill, president/CEO of the Colorado/Wyoming Credit UnionAssociation, said Cheney's operational and political experiencemake him a great fit.

“He has the broad range of experience that is needed. And thatbackground will help credit unions deal with the biggest need thatthey have, develop a vision for the movement that will help themthrive at a time when they should be thriving even more, given theproblems of other financial institutions,” Dill said.

Cheney, who is scheduled to start his new job on July 5, takesthe helm of the largest credit union trade group as it regains someof its strength that it lost because of the severe economicdownturn. CUNA, which has an annual budget of $51 million and 240employees, laid off 26 people last year and required all employeesto take five days of unpaid leave.

Cheney said it was too early to say what, if any, personnelchanges he will make at CUNA. But he emphasized that as a result ofthe especially poor economic conditions in California, he knows howto manage a trade association during difficult time. He cut theleague's operating budget from $13 million to $9 million during histenure.

In meeting the new challenges, Cheney brings a leadership stylethat is firm but open minded, said NASCUS President/CEO Mary MarthaFortney.

“He's a good listener and very deliberate. When you talk to him,the conversations are very interactive, and he doesn't talk atyou,” she said.

At the California/Nevada league, he has been active informulating its legislative and political strategy at time ofeconomic and political tumult in both states. The collapse of thereal estate market in both states has caused major declines n taxrevenues and that has triggered major budget shortfalls.

Since 2007, Cheney has contributed $18,950 to federal candidatesand committees, almost evenly divided between Democrats andRepublicans, according to data compiled by the Center forResponsive Politics.

Cheney's lack of experience in Washington isn't necessarily adisadvantage for CUNA, said former NCUA Board Member GeoffBacino.

“You can pay to fill any void you have in Washington access. Butit is harder to find someone who understands the credit unionsystem and leagues,” he said.

One issue that Cheney will have to deal with is how many voicesthe credit union movement will have in Washington. Though heemphasized that the decision must ultimately be made by people inthe movement, he said there should be one voice for creditunions.

“Over time credit unions will feel like they should have onevoice in Washington, but that's not something we will be able toforce,” Cheney said.

He is familiar with NAFCU, having served as an at-large memberof its board for six years, including a stint as board treasurer,before joining the California/Nevada league.

But NAFCU President/CEO Fred Becker, who strongly opposescombining the two trade groups, said he doesn't see Cheney'sselection as necessarily increasing the chances for a merger. “Iknow him well and look forward to working with him. But he servedon our board a long time ago, and things have changed a lot heresince then. We are a much different place,” Becker said. “But Ilook forward to working together as partners on behalf of creditunions.”

Cheney earned his bachelor's of business administration from theUniversity of Texas at Austin. He and his wife, Christine, a highschool college adviser, have a son and daughter.

He was chosen for the CUNA post from an applicant pool of lessthan 100. CUNA declined to say how many people wereinterviewed.

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