A Direct Line Blog

By Gerry Singleton, MCU President/CEO

In last week’s A Direct Line, I defined Executive Sessions and why our volunteer boards should use them. I also shared several benefits and obstacles to effective executive sessions and included ways to mitigate the obstacles. Today, I will share several best practices for using executive sessions well, along with several examples and use cases of Montana credit unions integrating executive sessions into their governance practices.

Best Practices for Using Executive Sessions Well

Here are some recommendations I learned and share with boards that want to strengthen their governance with executive sessions:

• Schedule them regularly: Make executive sessions a standing agenda item. Even a brief check‑in signals healthy governance.
• Clarify who should attend: Be clear about when the CEO is included, when they are excused, and why.
• Set the purpose: Before entering an executive session, state its topic — not the details but the category (e.g., “CEO evaluation,” “legal update,” “board self‑assessment”).
• Document appropriately: The minutes should reflect that the session occurred and list any decisions, not the discussion itself.
• Communicate outcomes to the CEO: After the session, the board chair or designated director should relay any guidance, feedback, or next steps.
• Keep it professional and respectful: Executive sessions are not the place to air grievances or pursue personal agendas. They should always reflect the board’s collective duty to the membership.

Montana Credit Union Examples

Example 1: Discussing CEO Evaluation Feedback

Montana’s Credit Unions offers training specifically on CEO performance evaluations, led by Montana governance experts like Bryan Fox and Nina Lund. These sessions emphasize the importance of clear communication and confidential feedback. Boards often use executive sessions to discuss this feedback privately before sharing a unified message with the CEO.

Example 2: Auditor Conversations & Financial Health

Montana boards routinely meet privately with auditors — something recommended in national governance guidance and practiced here at home. In Montana credit union governance trainings, boards are encouraged to use these sessions to receive unfiltered feedback on internal controls, risks, and audit findings before inviting the CEO back into the room. This aligns with recognized nonprofit and credit union governance practices.

Example 3: Succession Planning Discussions

Succession planning has been a major topic in Montana, highlighted in board governance training sessions focusing on continuity and future leadership needs. Because succession planning involves sensitive questions about timelines, readiness, and structure, boards often handle these early discussions in executive sessions before formally engaging the CEO.

Example 4: Strategic Oversight & Board Development

The Montana Board Governance Report stresses the need for boards to be “strategic assets,” leveraging board composition and education to strengthen governance. Executive sessions are a practical tool for these conversations — allowing the board to reflect privately on performance, governance gaps, and director development needs before making formal commitments.

Bringing It All Together

Executive sessions aren’t about secrecy — they’re about stewardship. When used correctly, they help boards fulfill their fiduciary duties, build stronger relationships, make better decisions, and navigate challenging issues with confidence and integrity.

For Montana’s credit union boards — made up of community‑minded volunteers who care deeply about serving members well — executive sessions are a powerful tool to help you govern with both transparency and discretion.

If your board hasn’t made executive sessions a regular practice yet, I encourage you to start. And if you already use them, take a moment to ensure you’re using them with intention, clarity, and consistency.

You — and your members — will be better for it.