By Donya Parrish, MCU VP-Risk Management
Every now and then, the conversation comes up about whether there need to be term limits for credit union directors. The argument for term limits has pros and cons, but it usually stems from frustration with a specific situation or board member and not a systemic problem. In fact, I think the discussion too often focuses more than it should on the amount of time on the board and not enough on the level of engagement.
Do some board members serve too long? Maybe. Do some step away before they fulfill their potential? Likely. With the complex nature of our industry, it can take a number of years before a director truly understands the many layers and challenges facing their credit union, let alone provide valuable input. Add to that the fact that board members are volunteers and most have lives and possibly careers outside the monthly credit union meeting, and you can see why this is not an easy question.
Scott Butterfield is the principal at Your Credit Union Partner and he explores this topic more in-depth in his article When is it time to go? I would encourage your board to discuss the level of engagement you want and need to move your credit union forward. And, if the time is right to invite change on your board, know it is in the best interest of your credit union and your members’ future.