✅ After Dissidents Ousted 3 Board Members in Prior Election, SECU Mulling Changes to Voting
RALEIGH, N.C.–After its most recent board elections results ended in dissidents ousting three members of its board, State Employees Credit Union said it is studying potential changes to how members elect board members.
The $54.5-billion SECU, the second largest CU in the world, drew considerable local press coverage over both its board elections and events that took place during its annual meeting, as CUToday.info reported [see story ink here] and [see story link here].
The dispute centered on SECU’s decision to move away from its traditional one-loan-rate-for-all-members policy toward risk-based pricing, and led to its current CEO [see clarifying a statement story link here] related to the wife of its former CEO that appeared in CUToday.info.
A ‘Key Change’
Now, according to Business North Carolina, the credit union is considering a key change that involves sending ballots to 2.3 million eligible members, or nearly a quarter of the population of North Carolina.
“SECU hasn’t mailed election ballots previously, a practice common for publicly traded companies,” Business North Carolina noted.
Four board members are up for re-election at SECU’s October 2024 annual meeting in Greensboro, N.C. Voting previously was done by paper ballot requested by members or at the meeting itself.
“SECU’s board last year launched an electronic voting option, but only 0.5% of eligible voters took part in the election, or 13,372,” the report noted.
The Three New Directors
As CUToday.info previously reported, in October 2023 three new directors were voted in--Michael Clements, Barbara Perkins and Chuck Stone–defeating veteran directors Alice Garland, Thomas Parrish and Jo Anne Sanford, “who were favored by SECU’s board,” the report sad.
The new directors were supported by former SECU CEOs Jim Blaine and Mike Lord, who have challenged the credit union board for “weaker financial performance and policy shifts,” Business North Carolina said, the latter a reference to risk-based pricing.
“SECU is considering the changes to boost member awareness of the elections, encourage participation and make it easier to vote, a spokeswoman says,” the publication added. “The credit union’s board elections have rarely been contested since its formation in 1937.”
The ‘Critical’ Question
Blaine told Business North Carolina he favors more input from members, including voting on directors in what is likely to be another competitive contest. He told the publication whether SECU’s proxy materials provide equal treatment for candidates who aren’t favored by the current board will be critical.
Blaine further told Business North Carolina his website, which is often critical of SECU and its new management team led by CEO Leigh Brady, averages more than 100,000 page views per month.
“Mailing ballots is their best hope to avoid another ouster,” Blaine told the publication.
