HIGHTSTOWN, N.J. (6/11/08)--The New Jersey Credit Union League board of directors is proposing a new governance structure. Due to changing demographics and new challenges, the league decided to take on the task of governance restructuring last year.
From left) New Jersey CU League Chairman Steve Schlundt, NJCUL President/CEO Paul Gentile and NJCUL Board Member Shawn Gilfedder prepare for a special Webcast announcing the proposed governance changes. (Photo provided by NJCUL)
The league board appointed a 14-person Governance Task Force to recommend to the board a new structure (The Weekly Exchange
June 9). “We recognized as a board that it was time to evaluate our governance structure and see if we could make changes that would make us a more efficient league,” said Steve Schlundt, league chairman and CEO, Atlantic City Fireman’s FCU. “By doing so, we feel it will improve the way we do business, and most importantly, help us with our primary task of meeting the needs of our members.” Some of the changes the new structure would bring to the league are:
* Board reduction: The board size would be reduced from 15 to nine; * Term limits: Board members could serve three consecutive three-year terms; * Asset representation: Three directors would be elected from three tiers: Tier A, including less than $25 million in assets; Tier B, more than $25 million in assets; and Tier C, credit unions of any asset size (at large); * Board qualifications: Candidate must be either a board member or president/CEO (or equivalent) of an affiliated credit union in good standing; * Voting rights: Credit unions will vote on candidates in their tier, as well as the at-large tier; and * Timing: If approved, the new election rules will be immediately implemented for the 2009 elections cycle, with the newly elected board seated in 2009.
The league board has approved the restructuring changes. The final step before implementation is the membership vote, which will take place at the league’s annual meeting Sept. 21-23. The changes will be distributed next week to New Jersey credit unions through a webcast, according to Paul Gentile, president/CEO of the New Jersey Credit Union League. He said the webcast is just one of many methods of communication the league will use to ensure everyone is aware of the changes. "It is our duty at the league to ensure members are fully informed about the governance bylaw amendment and what it means to the structure of the league board," he said. "It is in the hands of the membership and they must be educated well in advance of our annual meeting this September."