State Chartered Credit Union million million SAMPLE SUCCESSION PLAN

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					                                                                                                     State-Chartered Credit Union
                                                                                                     $10 million -$20 million

                                 SAMPLE SUCCESSION PLAN POLICY #3

This policy is intended as a “sample” or “guide” to help credit unions develop their own customized or
individual policies. However, a policy that works well for one credit union may not be appropriate for
another. Therefore, each credit union should make revisions by deleting or adding language to
accommodate their own particular situation regarding technology, personnel, products and services,
facilities, and other relevant factors. The credit union's policies should be reviewed for compliance with
applicable rules and regulations from time to time. The League cannot guarantee that a sample policy is
in compliance with the law. The policy is not intended as legal advice.

                                    SAMPLE SUCCESSION PLAN POLICY

                             _________________________ CREDIT UNION


It is the intention of Credit Union Board of Directors to emphasize the importance of
continuity of management and leadership and to ensure the smooth transition of
authority in the case of the President’s departure from Credit Union.

Unplanned Departure

If the departure of the President is unplanned and without warning, the Chairperson of the
Board of Directors will immediately inform all employees and draft a letter to all members to
inform them of the situation.

A meeting of the full staff will be held to explain the situation and the Board’s anticipated
response. The employees will be reminded that the Board of Directors is responsible for any
communication related to the situation. Explanations of how the staff should handle the
situation with members, etc. will be provided. Considerations for discussion include:
    • Reason for departure
    • Response that employees are allowed to give to members, vendors and others who ask
    • Person(s) in charge
    • Projected process for replacement of President/CEO with anticipated time frames
    • When and how additional information will be provided

The management team, Operations Manager, Senior Loan Officer and Head Teller will
be jointly responsible for the operations of Credit Union until the Board of Directors
makes an appointment of an interim President/ CEO or the final choice of a new
President/CEO. If a conflict of decisions comes up between management team
members, the problem will then be brought to the Chairman of the Board for a final decision.

                                              The Wisconsin Credit Union League
         N25 W23131 Paul Road, Pewaukee, WI 53072-5779 Phone: (262) 549-0200 (800) 242-0833 Fax: (262) 549-7722 Web:
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The Chairman and the management team will determine the need to:
   • Change combinations
   • Change or delete security codes
   • Change door locks
   • Change computer passwords where necessary: (e.g., system server, data processor,
      Corporate Central Credit Union and other Internet accounts)

Notification will be provided to:
   Office of Credit Unions/DFI                                              608-261-9543
   National Credit Union Administration                                     630-955-4100
   Wisconsin Credit Union League                                            800-242-0833
   Corporate Central Credit Union                                           800-242-4747
   (insert data processor name)                                             XXX-XXX-XXXX
   (insert insurance company name)                                          XXX-XXX-XXXX

Special Board of Directors Meeting

The Chairman will call a special meeting of the Board of Directors as soon as possible, but no
more than five working days after the President’s departure. If the Chairman is unavailable,
then all duties fall to the Vice Chairman.

At this special board meeting, the Board of Directors will name an interim president or the
management team to conduct the business of Credit Union. During this time, the management
team will continue to conduct business as usual within their departments.

President/CEO Search

Either at the special meeting or at the next regularly scheduled board meeting, the Board of
Directors will address:
    • Forming a search committee or hiring an outside consulting firm,
    • Deciding on the time frame within which they will work to replace the President/CEO,
    • Advertising outside Credit Union, the geographical area or state to fill the position, and
    • Making an announcement to the employees on the status and the procedures of the

                                             The Wisconsin Credit Union League
        N25 W23131 Paul Road, Pewaukee, WI 53072-5779 Phone: (262) 549-0200 (800) 242-0833 Fax: (262) 549-7722 Web:
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Primary Responsibilities and Skills of ________________Credit Union President /

Below are the areas of performance, which are expected by the Board of Directors for the daily
and long-term management of Credit Union by its President/CEO.

   1. Work with the Board of Directors to develop a vision for the organization and lead others
       toward the achievement of that vision.
   2. Maintain a professional appearance and manner.
   3. Board relations/Board meeting preparation.
   4. Human resource management/ delegation.
   5. Financial analysis and reaction/recommendations.
   6. Must be able to deal effectively with examiners and auditors, ensuring that they receive
       proper cooperation from staff and all necessary information.
   7. Analyze examiners and auditors reports to identify any problem areas and solutions to
       these problems.
   8. Preparation and presentation of a short term and long term business plan (goals).
   9. Preparation and presentation of a budget which supports the business plan.
   10. Member relations/meeting member needs.
   11. Credit union industry involvement and relations.
   12. Ability to create, implement and monitor policies and procedures.
   13. Maintain facilities and equipment.
   14. Oversee marketing and member awareness.
   15. Human resource development of staff through education and seminars.
   16. Use of technology to ensure efficient and effective delivery of products and services to
       Credit Union members.
   17. Financial strategies and goal development from an ALM perspective.
   18. Oversee the accounting function to insure the balance sheet and income statement
       properly reflect the financial condition of Credit Union.
   19. Pursues own professional development.
   20. Supports the credit union movement and philosophy.
   21. Analyze problems as they occur and determine solutions.
   22. Ability to work with staff or delegate of staff as appropriate.
   23. Schedule and direct regular meetings to promote coordination of effort and improve
   24. Planning and reacting to changes and circumstances in a timely manner, as deemed

                                             The Wisconsin Credit Union League
        N25 W23131 Paul Road, Pewaukee, WI 53072-5779 Phone: (262) 549-0200 (800) 242-0833 Fax: (262) 549-7722 Web:
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