There are stark differences of opinion on credit union governance at top organizational levels in the industry, according to a new report from the Credit Union Executives Society, with CEOs and boards of directors agreeing on just 16 percent of questions used to compile data for the study.
CUES, in partnership with Quantum Governance L3C, recently released “The State of Credit Union Governance 2018,” which reveals how credit union boards, CEOs, supervisory committees and senior staff members are performing across the industry.
Aside from evaluating the current state of credit union governance, the report also examines five areas covered in the assessment:
- Vision, mission and strategy;
- Board structure and composition;
- Fiduciary oversight;
- Governance and leadership;
- Supervisory committees.
One potentially surprising aspect of the study was that board member and CEO perceptions of governance diverge based on tenure. Specifically, board members who have served on their boards for longer periods of time have more positive of governance views than those board members who have less tenure. Conversely, CEOs with longer tenures tend to be more negative than CEOs with shorter tenures.
“Collecting and analyzing the last five years of data provided by our board governance assessment has allowed CUES and Quantum Governance to bring these very valuable insights to the industry,” John Pembroke, CUES’ president and CEO, said in a statement.
The report also includes five data-driven recommendations for future success.
“Our hope is that credit unions of all sizes can find value in our findings and implement our recommendations for their future success,” stated Michael Daigneault, CEO of Quantum Governance L3C.
The report can be downloaded at: www.cues.org/GovernanceReport.