PHOENIX—Of the 255 CEOs hired by credit unions in the past 18months, 64% have promoted or hired CFOs, D. Hilton AssociatesPresident/CEO David Hilton told attendees during his breakoutMonday session at the CUNA CFO Council conference.

The event runs through Wednesday at the Wild Horse Pass Resortin Phoenix.

“Anyone in this room who thinks they won't get that CEO opportunityis wrong,” Hilton said

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The pool for viable candidates is shrinking, he said, becausemany aren't interested in uprooting their families and moving.Others don't fit the bill when it comes to experience, skills oreducation.

Because the candidate pool is so shallow, Hilton said, CFOs nolonger need to look at positions at credit unions with fewer assetsthan their current employer.

“In the majority of the last 19 positions we've filled, nobodywent down in asset size,” he said. “So, don't set your sights toolow. If you're the most qualified candidate, to a certain point,asset size won't make a difference.”

However, education and experience still matter. Hilton said anMBA is the most important degree or certification a candidate canhave on his or her resume. A CPA certification is alsohelpful, he said, as is a law degree, giving today's currentregulatory environment.

However, Hilton said he hasn't found that boards value the CUESCertified Credit Union Executive certification very much.

“Boards don't seem to understand what it is or how much workgoes into it,” he said.

Internal CFO candidates may have difficulty overcoming a “beancounter” reputation because the CEO position requires charisma,Hilton said. Leadership conferences and greater involvement incommunity involvement or comparable experience with select employeegroups can help overcome that problem, he said.

“If it's a community charter credit union, it could make thedifference between an internal and external candidate,” he said.“The more people you know, and the more community involvement youhave, the more difficult it will be to replace you.”

However, internal candidates often have more difficultyreceiving proper compensation, he said. The recruiter said he argues frequentlywith boards that want to promote an internal candidate to the CEOposition but keep them at the same compensation level until he orshe has a couple of successful years in the position. “I tell them,'No, you are hiring this person for the job',” he said. “If youdon't think they are ready, don't hire them.”

While internal candidates may bristle at a board bringing in arecruitment firm, Hilton said, it does bring the advantage ofproper compensation.

Compensation should be discussed early in the interview process,he said.

“Why go through the torture without knowing what you'll bepaid?” he said. “This isn't your first job, when you're desperateenough to take anything. This will be a lifestyle, so you need toknow what you will be paid.”

Because so many credit union CEOs have historically been intheir positions for 20 years or more, Hilton said boards often havean unrealistic expectation regarding how long a CEO will remainwith the credit union. The average CEO tenure now is 7.6 years.