By CUEvangelist – March 21, 2024

Board succession is a difficult topic for credit union directors to talk about. Often it requires hard decisions to be made that usually don’t align with the self-preserving mindset of volunteers.

This is true especially among board members who are retired and found purpose as directors. However, for a board to be truly successful there needs to be a process in place for succession.

Keep in mind, that success is in the word succession. Boards cannot be really successful unless they plan for the future by ensuring that a talent pipeline exists.

Here are the 3 things boards can do:

1) Director Emeritus Program – allows senior board members to transition off the board with dignity and respect while maintaining wise counsel and experience attending board meetings without a vote.

2) Director Advisory Board is an excellent way to recruit new talent but young and experienced and establishes a pipeline for succession as they can attend board or committee meetings without a vote.

3)Term Limits – my least favorite but may be necessary if the majority of board members are limited in their capacity to exercise their fiduciary duties.