Tuesday, June 13, 2023

The Candidate Search - Knowing Where The Problem Lies, Part 1 - An Incredible Board

https://www.kindpng.com/picc/m/9-94281_stick-man-thinking-hd-png-download.png There is a serious credibility problem at SECU which appears to be growing substantially, among both members and staff. Why is this happening?

What started out as a polite resolution of inquiry at the 2022 Annual Membership [see Oct. 11, 2022 post], concerning issues of LGFCU merger, open membership, credit score-tiered lending, multi-state expansion, and commercial lending has metastasized into a cancer of disbelief and distrust for the leadership of SECU. 

Now, that's only my personal opinion, but it is based upon listening, over the last several months, to SECU Board responses which were less than forthcoming and frequently simply false. The unwillingness by the SECU Board to provide the data and research which supported their views was surprising and disheartening - and not what a member-owned cooperative is about. 

Most appalling, however, was - and still is - the willingness of every Board member to remain silent when SECU leadership made statements to the membership - and to the public - which were untrue. No Board member - in my opinion - escapes accountability, responsibility, and liability for aiding and abetting deception and misrepresentation through their silence. Their silence is their endorsement.

The SECU Board meets next Tuesday. Over the next week we're going to take a serious look at the judgment of the SECU Board of Directors - "This Board".  Our first focus will be on how it was possible for "this Board"  in 2021 to choose the least likely candidate on the planet to become the new CEO at SECU. How did that happen?

You will not like what you learn.... so, let's start with the recent full endorsement by "this Board" of their leadership choice.

Board of Directors Group Image 

                 Nothing to smile about, folks...

❓In evaluating CEO candidates, was the Board of Directors aware of Jim Hayes's time as CFO at Wescorp when it went into receivership?

✔ Yes. The Board of Directors retained Russell Reynolds to conduct a national candidate search and extensively investigate all CEO candidates, including Jim Hayes. The investigation included conversations with regulators and others with first-hand knowledge of the Wescorp receivership and related litigation. Through those conversations, it was clear that not only did Mr. Hayes have nothing to do with the issues that put Wescorp into receivership, the National Credit Union Administration (NCUA) retained him as the CFO because they trusted him to stabilize the situation and wind down operations in an orderly manner. The Board concluded that the same leadership qualities that NCUA recognized when it asked Mr. Hayes to navigate Wescorp through receivership as CFO, stood as concrete examples of an SECU leader "Doing the Right Thing," particularly in the face of adversity. 


...but if, as a member, you're going to take this seriously, you need to invest some time in that documentary "Inside Job" [June 2, 2023 post], so you will have some context for what you are about to learn. 

Really, the PTO, snark, score-settling, "character tweaking", yacht party etc is "interesting", but you need to stop and do your homework if you want to decide if a major change is actually needed - this is crunch week.



About That "No Formal Proposal Proposal" To Merge - (The infamous Ayers "NFPP")....

Current Local Government FCU Rates:

Current SECU Rates:


😎 With the Money Market rate at LGFCU twice the rate at SECU (2.02% v 1.01%) and with Certificate of Deposit rates generally 1.00%+ higher (on a percentage basis that's 20%-25% more!), perhaps it's time to reconsider that "NFPP"...

 .... think there's any possibility of tricking the LGFCU Board into making an "informal merger proposal" to merge (a reverse "NFPP"!) and take SECU under their wing?

   Looks like SECU members would fare better and it would be an easy way to get rid of "this"...