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Turn Your Succession Plan into a Succession Strategy
Monday, May 4, 2015 6:20 AM

By Scott Albraccio

Did you see the statistics presented by CUNA that tell us more than 50 percent of credit union CEOs are eligible to retire in the next 10 years?* Is your credit union sufficiently prepared to retain (or recruit) your CEO's successor, to help in continuing to meet your strategic objectives?

With C-suite executives being actively recruited every day, a succession plan typically isn't enough. You need a succession strategy, one that will prevent meeting your strategic and financial goals through continuity of decision making.

A succession strategy can decrease your credit union's risk of losing key leaders to another organization by helping to meet their personal financial needs into the retirement years. A supplemental executive retirement plan is a solution that aids credit unions in their ability to competitively reward and retain top talent.

Given that traditional retirement plans have contribution limits, your CEO (and other C-suite executives) may face a gap in their income at time of retirement. The threat of this retirement income shortfall may be enough to lure them to another organization, or prevent a top recruit from coming on board.

Maurice Simard, CEO at Triangle Credit Union, believes that this solution is more than just golden handcuffs. According to Simard, it reinforces a manager's commitment to the credit union growth and success. The benefits also communicate how important these individuals are to the board and the credit union as a whole. In other words, they not only create an incentive to stay, they foster a desire to stay as well.

As proof, Triangle has had no voluntary turnover among its highest-level employees in the past 15 years. “When you give someone this kind of benefit, they feel valued,” Simard says. “We have an excellent management team. They're very capable. And the reason why we did this was really to entice them to stay with Triangle.”

* CEO Total Compensation Report for credit unions with $100M+ in assets, CUNA, 2013-2014.

Scott Albraccio is sales manager for Executive Benefits at CUNA Mutual Group. Contact him at 800.356.2644 Ext. 608.665.6542, or at scott.albraccio@cunamutual.com.

Are You in Need of Succession Planning Services?

Board and CEO Succession Plan Development

During a four to six hour on-site workshop Credit Union Resources will work to develop the components for your credit union's board or CEO succession plan, including the document and policy document development. These areas will focus on the talents and competencies, needs assessment, recruitment, candidate assessment, and development of qualifications. Credit Union Resources' goal is to ensure your board or CEO will possess with the right competencies and skills needed to take your credit union into the future.

Board Succession Planning

It's not about driving long-term or "old" directors out, or judging the skill level of current board members. It's about being ready for inevitable turnover and knowing what skills to look for in future directors. Using our planning program, along with the convenience of a user-friendly web tool, we can easily create a foolproof plan for your credit union's future. This will allow you to create a board that embodies the critical competencies you feel are important, always have qualified candidates available, have a seamless transition when director openings occur, and preserve your credit union's tradition of excellence. We will guide your board through a step-by-step process to create a clear map to your future.

CEO/Management Succession Planning

What if the CEO or other key executive left your credit union today? Do you have a plan? Have you developed others to step in? Are your key executives motivated to stay? Use this user-friendly web tool to plan your future now with confidence and ease and to ensure that:

  • You always have a plan in place in the event of a sudden or planned departure,
  • You keep senior leaders motivated to stay by providing planned development opportunities, and
  • The board and CEO are working from the 'same plan' so they are on the 'same page' in terms of CEO Succession.
  • Contact Information

Karen Houston-Johnson
(800) 442-5762, Ext. 6626
(469) 385-6626
khouston@curesources.coop

Howard Bufe
(800) 442-5762, Ext. 6820
(469) 385-6820
hbufe@curesources.coop

Dean Borland
(800) 442-5762, Ext. 6627
(469) 385-6627
dborland@curesources.coop