A Direct Line Blog

By Gerry Singleton, MCU President/CEO

Serving on a credit union board is one of the most meaningful volunteer roles out there. You’re helping safeguard your members’ assets, shaping strategy, and ensuring your credit union stays true to its mission. With all that responsibility, it’s no surprise that board meetings cover a wide range of topics — from routine reports to big-picture planning to the occasional thorny issue that requires extra care.

Since I report to a board and serve on a few boards, I added board governance to my development plan in 2025 (it’s on there for 2026, too!). Donya and others provided a wealth of resources, and I have gained valuable insights to help me be a more effective board member and executive reporting to a board.

One tool that came up consistently in my study as effective for boards that are navigating sensitive topics is the executive session. Despite the term sounding a bit formal (and maybe even intimidating), executive sessions are simply a best-practice governance tool that can strengthen transparency, accountability, and trust — both within the board and between the board and management.

Let’s dig into what executive sessions really are, why they matter, and how to use them well.

What Is an Executive Session?

An executive session is a portion of a board meeting where some individuals — often the CEO, senior management, or other guests — step out so the board can speak candidly and confidentially. Depending on the issue, the session may include:

• Only the board (voting members)
• The board plus the CEO
• The board plus invited individuals (e.g., legal counsel or auditors)

Executive sessions are not secret meetings. They are simply a structured way to ensure that certain types of conversations happen in an environment where board members can be fully open without risking misunderstandings or unintended consequences.

Why Boards Should Use Executive Sessions

• Protect confidentiality and integrity: Some topics — legal matters, personnel issues, internal investigations — require a private and confidential setting. Executive sessions ensure that the board handles sensitive information responsibly.
• Support healthy board-CEO dynamics: These sessions give the board a chance to discuss performance, feedback, and expectations without putting the CEO in a difficult spot. They also offer the CEO a safe space to raise concerns or talk candidly, depending on who is included.
• Strengthen board cohesion: Executive sessions often prompt more honest, meaningful conversations. When board members can speak freely, clarity and trust deepen — which ultimately leads to stronger governance.
• Reinforce oversight and accountability: Regulators increasingly expect boards to engage in rigorous oversight. Regular executive sessions provide a documented (but confidential) way to demonstrate that the board takes its responsibilities seriously.

Common Benefits

From working with boards across Montana and beyond, I’ve seen a consistent set of benefits when executive sessions are used intentionally:

• Better decision-making: Sensitive information can be considered without external pressure
• More effective communication: Board members often feel more comfortable raising concerns or differing viewpoints
• Stronger governance discipline: Regular use of executive sessions reinforces the board’s role in evaluation, oversight, and strategy
• Improved relationships: Ironically, meeting without the CEO present at times often strengthens the board–CEO relationship, because expectations and feedback become clearer. I have noticed this firsthand in my relationship with the Montana’s Credit Unions board of directors.

Potential Obstacles (and How to Navigate Them)

• Misunderstanding or discomfort: Some board members worry that executive sessions seem secretive or negative. The fix? Normalize them. Make clear that they’re a routine governance tool — not an indication that something is wrong. We regularly have executive sessions at our board meetings for the league and the health insurance trust.
• Inconsistent use: If executive sessions occur only during crises, they take on a stigma. Instead, schedule one at every board meeting — even if it’s only five minutes. Most months, it will be brief, but the consistency matters.
• Poor communication afterward: Board discussions in executive sessions should stay confidential, but any decisions or direction for the CEO must be communicated clearly. Otherwise, confusion or mistrust can grow.
• Overuse or lack of structure: Executive sessions shouldn’t become an alternate board meeting. Keep them focused, intentional, and tied to specific governance responsibilities.

Next week, the blog will cover best practices for Executive Sessions as well as several practical examples credit unions in Montana use in their governance practices.