What CEOs Want Their Board to Know

“There are many items CEOs regularly ask me to remind their boards of,” said Wallace, president of Signature Resources, Inc., and facilitator of CUES’ recent Board Chair Development Seminar.

• Bowling, golfing or skiing might be great networking venues, but the relationship needs to stay professional and not cross over into buddy territory.
• Remember to give feedback in a professional manner and setting, not on the golf course or at the bar.
• Rules of engagement help everyone to know what to expect. This can include having regular face-to-face meetings scheduled outside of board meetings and using advance agendas.
• CEOs appreciate timely, specific feedback, with solid examples and data, not speculation or hints.

Wallace has also found a common thread when it comes to CEO stressors. “In addition to running one of the most challenging businesses in the world, credit union CEOs can be most stressed by their board,” he said. Frequently mentioned points of pain include:

• lack of clarity from the board to the CEO, or irregular feedback and evaluation;
• board members who aren’t literate in governance;
• boards “getting in the weeds”—the details—of management;
• board members who are not up to date on national and regional banking issues; and
• the board makeup not matching the future needs of the CU, or being conservative to the point that innovation stops.

According to Wallace, it’s also important for boards to remember that one of their most important duties is to help their CEO be as successful as possible. He recommends:

• doing annual CEO goal-setting, review and evaluation with entire the board—not committees. The chair and vice chair may deliver the final report, but the entire board needs to be accountable.
• supplementing the annual review with mid-year feedback on CEO performance. Tell the CEO what the board wants—and listen to feedback.
• recognizing that there’s no textbook answer to how often the CEO and chair should touch base. However, a weekly email or phone conversation is a great starting point. The team can decide from there what’s needed.
• having a personal management development plan, with at least part coming from sources outside the CU world.
• having an annual facilitated retreat to help align vision and strategy.

Wallace sums up the CEO/board relationship with one simple idea: “If the CEO isn’t ‘scaring’ the board with big ideas regularly, it’s not a robust partnership,” he said. “The idea is to stretch everyone’s thinking, and not to settle for status quo.”

Leisa Goodman is a CUES marketing specialist.