Dave Adams, president/CEO of the Michigan Credit Union League & Affiliates, said any speculation that CUNA Mutual Group is planning to cut revenues to the state leagues and their league services corporations, is “completely false.”
“I can tell you that it is absolutely false that [CUNA Mutual President/CEO] Bob Trunzo has said anything publicly that I am aware of about dramatic cuts in these marketing agreements,” Adams said. “It's a process that is discussed every year and I am confident we will continue to have very strong good partnership with CUNA Mutual Group.”
Adams' comments followed reports provided to CU Times by multiple sources that said Trunzo told league presidents CUNA Mutual would cut its support of CUNA and its affiliate leagues by as much as 50%.
According to Adams, what Trunzo has said was that he wants to continue to look for the ways to enhance the agreements so that CUNA Mutal rewards performance by those league services corporations helping to drive deeper levels of engagement by credit unions for CUNA Mutual services.
“We always recognize every year that there is always going to be some give and take to make those agreements stronger and better,” he said.
Adams pointed out that what Trunzo has said to league presidents is nothing different from what his predecessors have said when they took over the helm at CUNA Mutual.
He also said Trunzo is the not the kind of executive who is going to do something draconian.
“He [Trunzo] is going to take a very thoughtful results-based approach with plenty of open communication,” Adams said. “I believe that if there were to be reductions in marketing reimbursements, it would be something that would be well thought out, discussed and planned for. The reality is that CUNA Mutual will continue to pay its own sales staff, pay its marketing partners based on results, and that's the way it should be.”
Adams' statement conflicts with another league president who told CU Times CUNA Mutual would reduce its support when the contract between the parties expires in 2016.
“There will be changes in our agreement and the total amount will be reduced. At this time it has not been defined between the parties,” Diana Dykstra, president/CEO of the California and Nevada Credit Union Leagues, said.
Phil Tschudy, media relations manager for CUNA Mutual, declined to comment on the matter, calling it speculative.
According to a CUNA Mutual brochure, the firm provides $39 million in annual financial support to the state leagues and other organizations such as CUNA, CUES, the American Association of Credit Union Leagues, World Council of Credit Unions, America's Credit Unions and America's Credit Union Museum.
Don Cohenour, president/CEO of the Missouri Credit Union Association, said he was unaware of CUNA Mutual's alleged reductions.
CU Times contacted several other league president/CEOs but they declined to comment and referred calls to Tracie Kenyon, president/CEO of the Montana Credit Union Network, who was named the new AACUL chair this week.
Kenyon did not return calls and emails seeking comment.
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