CEOs, Strike Two..
TRUST AND STEWARDSHIP
A Credit Union CEO Questions SAFE Credit Union’s Proposed Merger
by John Tippets September 28, 2026
[About the author: After earning an MBA from UCLA, John Tippets spent 20+ years in a for-profit environment. John Tippets served as CEO of San Diego North Island Credit Union for three years and American Airlines Federal Credit Union for seventeen years.]
The character of leadership has a great many dimensions. Among these are to be trusted, honest and open. Customers, owners, and employees rightly expect no less.
Leaders also have a role as stewards: the care and protection of the reputation and brand; the quality of the products; the welfare of the employees and their families; and the financial and physical assets of the organization. These are all functions of a leader’s responsibilities.
Self-Interest Versus the Public Good
Sadly, in today’s world, these principles are too often not adhered to or intentionally violated. In some charities, NGOs, and similar non-profit entities, overhead costs (including executives with excessive compensation) eat up significant portions of donations, of government / taxpayer funding, and of earned income.
We see these self-dealing operators diverting dollars to fancy cars, expensive vacations, and many other personal remunerations. We see politicians compromised, doing the bidding of large donors, or taking financial advantage of non-public information for personal gain.
SAFE Credit Union’s Role Reversal
Credit Unions are not-for-profit cooperatives with tax exemptions that attest to their civic public duty roles. Credit union employees work every day to help improve the lives and welfare of their members and their communities. Credit union employees generally love what they do and love the people they do it for. SAFE Credit Union, headquartered in Sacramento, is one of many that has done a fantastic job living this vision and mission for generations of local member-owners.
It stunned me to learn of plans by the SAFE Credit Union Board of Directors and its executive leadership to eliminate this regional institution by allowing it to be acquired and merged into Boeing Employees Credit Union, an organization with no ties to Sacramento.
Hopefully, SAFE members will be given the opportunity to factually learn the pros and cons, the expected operational changes, and the financial and service impacts that will affect themselves and their community. Will employees be encouraged to share their thoughts or will they be urged to just acquiesce? Will members be engaged directly? Will insiders’ “generous” benefits be fully disclosed and justified?
The Real Question for SAFE Members
The narrative I have outlined above challenges the loss of the fundamental character of leadership at so many not-for-profit institutions. Although we can recognize that the process involving the SAFE Credit Union “merger” meets the minimum legal and regulatory requirements, the essential question is whether the likely outcome is morally and ethically correct and consistent with the principles and purposes for which SAFE Credit Union was created and currently exists.
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