Executive Summary
The board of directors plays a key role in the success of a credit union. The board selects the CEO, manages the relationship with the CEO, and has ultimate authority over the credit union. Therefore the manner in which the board is developed can make a substantial difference in the performance of the credit union. Board development has several dimensions. The very first dimension is how the directors themselves come to sit on the board.
What is the research about?
The purpose of the study reported here is to provide information on actual credit union practices determining who will be directors. In addition, the research reports opinions of CEO’s and board chairs on how well these practices work. These results provide a way for all credit unions to evaluate their practices compared to a representative sample of all credit unions.
What are the credit union implications?
The goal of this research study is to determine how credit unions recruit and select board members. You will learn a lot of information about your colleague’s practices in the pages that follow. As you read this publication ask yourself “how can my credit union become better at recruiting and selecting board members?”
Filene Research Institute firmly believes credit union directors are distinct from other financial institution directors and have the potential to add an enormous amount of value to their institutions. Through research projects such as this we can start the conversation about how overall credit union governance can grow and improve.