A Direct Line Blog

By Donya Parrish, MCU VP Risk Management

If you gather a group of credit union executives or board members, chances are high that the topic of succession planning will come up. It may be easy to focus on CEO succession, but don’t forget about planning for board member replacement, too.

Board succession can be necessary for emergency replacement and for a new person to step in when someone decides not to run to retain their seat. Either way, an associate board member program may be one way to build a successful transition.

America’s Credit Unions recently posted this blog to discuss how credit unions are using associate programs. We have several credit unions across Montana already using them and reporting their success with building the knowledge needed to pass the baton. Other credit unions may be wondering how to start or hearing about it for the first time. Either way, there are resources to assist you in the process.

NCUA has this statement in their model bylaws that I think sums up the position well: ” The board may also establish the position of associate director through board policy. This position is designed to provide qualified individuals with an opportunity to gain exposure to board meetings and discussions but without formal director responsibility or the right to vote. It may be thought of as an apprenticeship position in which the incumbent receives training and knowledge about the business of the board, with the expectation that the experience will prepare him or her for an eventual election to a director position. As with the director emeritus position, the decision to establish an associate director position, as well as the selection of individuals to become associate directors, is solely within the discretion of the board.

To assist their learning process, the board may determine to permit associate directors to have access to confidential information, including but not limited to the credit union’s examination reports and CAMEL ratings, to the same extent as members of the board. Associate directors are also subject to the same confidentiality and conflict of interest standards applicable to directors.”

Your own MCU Board started an associate board member program in the fall of 2025. If you need a sample policy, let me know. I am also happy to connect you with a credit union currently using an associate board member program.