5 Reasons Why Boards Don't Do Annual Reviews

Almost 15% of the largest credit unions in the nation lost money last year and more than 20% experienced negative loan growth. If your credit union was fortunate enough to make money or grow loans, then congratulations and condolences are in order.

You are now officially on the radar of almost 1,500 credit unions that covet your CEO. Today’s environment suggests that boards need to formally evaluate their CEOs’ performance, and update salary, incentive and retirement plans to keep their top talent.

While most credit unions provide an annual salary increase for their respective chief executives, 30% do not have a formal review process for their CEOs’ performance, almost 40% don’t review their CEOs’ retirement plans on an annual basis and more than half find their incentive plans to be difficult to maintain. Reviewing and maintaining your CEO’s compensation, incentive structure and retirement plan are essential to inspiring top performance.