NCUA approves “daunting” succession planning rule by 2-1 vote
Board Vice Chairman Kyle Hauptman voted against the proposal, claiming it could actually hamper succession planning efforts for small credit unions.
The National Credit Union Administration approved a proposed rule that would require federally-insured credit unions to establish succession planning for key positions in their organizations.
At the board’s July 18 meeting, Chairman Todd Harper said the regulator has found that 25% of credit unions either lacked any plan or had an inadequate plan.
“Without a rule, we can only encourage credit unions to adopt effective succession plans through exam findings,” he said. “A rule would allow us to require such planning.”
Harper also quoted Benjamin Franklin, who reportedly once said “if you fail to plan, you plan to fail.”
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