White Paper - Putting Mebmers' Interests First with Change in Control Agreements

Change-In-Control Agreements – Align Member And Executive Interests

New White Paper Explores Change-in-Control Agreements as a Tool in Credit Union Merger Discussions

KENT, Wash. (May 31, 2018)—Change-in-control agreements may be an underutilized means of helping to ensure an objective assessment of merger proposals in the credit union industry, according to a new white paper from the CEO Advisory Group.

“Putting Members’ Interests First: How Change-in-Control Agreements Ensure a Neutral View in Credit Union Merger Discussions,” by Glenn Christensen, offers an overview of these contractual arrangements between business organizations and their executives in financial services and other business sectors.

Click Here to Download White Paper “Align Member & Executive Interests”

The white paper examines the purpose and structure of change-in-control agreements for credit unions and their CEOs and other top executives, especially as those provisions apply in mergers. It offers key considerations for executives and directors in exploring whether and how these agreements might benefit their organizations and how CIC provisions are typically developed and maintained.

“The scant data available among credit union organizations indicates that these agreements are not widely used, but they can be designed to support an impartial evaluation of merger offers and to avoid unpleasant surprises during merger negotiations about executive compensation,” Christensen says. “And CIC arrangements can be designed to enhance retention of executives through the sensitive stages of merger due diligence and implementation.”

The white paper is available free of charge, click here.