“Who shall lead” is a key merger question
The viability of a credit union merger frequently hinges on the question of leadership. A strong CEO is vital to the success of the post-merger organization, but so, too, is a senior management team that has the talent, expertise, and experience to carry out the strategic directives that will drive the credit union forward.
Will the CEO of the merging credit union be part of that team? Oftentimes, the answer is no because the main reason the merger came about in the first place was because of the CEO’s pending retirement. In many cases, it’s a long-tenured CEO who was the backbone of the credit union for decades. Upon the announcement of that CEO’s retirement, the board and senior management may come to the realization that this is the perfect time to seek a merger, especially if there is no clear line of internal succession and seeking an outside candidate would be cost-prohibitive.