Worried About Your Role As CEO Post Merger?

As a CEO, you’ve likely spent many years procuring your credit union into what it is today. You’ve logged countless hours in board meetings, met with staff at all different levels, and dedicated your days to ensuring your credit union operates with an optimal growth strategy at the heart of your business.

 

When you’re facing a merger, it seems like everything changes in the blink of an eye. In some aspects, that may be true, but it’s important to remember that change isn’t necessarily a bad thing; in regards to credit union mergers, change is often the fuel organizations need to ignite brand new lights.

Click here for CU Merger Perspective Survey

Credit Union Mergers: Confronting CEOs’ Fears

It’s unlikely that any merger will be successful if the CEO isn’t onboard. These top leaders are instrumental in the successful union of two different organizations. As such, each CEO must understand his or her fears as they relate to the merger process so they can work through their confusions and questions in a productive manner.

Leaders often wonder:

• Should I even stay with the continuing credit union?

• What will my role be if I do stay?

• How will my responsibilities change if I take a different role with the new organization?

• Will my retirement be funded appropriately?

• If I decide to leave, will the merger set me up for success by way of a severance package that continues the standard of living I’ve built for myself and my family?

The key to overcoming fear is facing it. Yes, each of these questions is quite valid, and there is no one-size-fits-all answer.

For some leaders, this may be the ideal time to leave the credit union world and venture off into the land of retirement. For others, there are greater roles and responsibilities awaiting them on the other side of the merger fence.

Naturally, none of these fears can be addressed until they’ve been stated. The more honest CEOs are willing to be about their uncertainties, the quicker these problems can find resolutions. It’s all about transparency, and transparency begins at the top.

Credit Union Mergers: Embracing Opportunities

There are two important factors that must be diligently evaluated in order to ensure CEOs reap the rewards of an upcoming merger: their goals and motivations.

By thoroughly examining each of these elements, CEOs can be assured they’re making the move that’s best for themselves and their credit union communities.

• Accommodating a Continuing Relationship. For CEOs who wish to stay with the continuing credit union, third-party merger advisors find ways to ensure they’re compensated as well as they were in their prior roles. Many times, expert advisors are able to negotiate increased salaries and benefits, bringing under-funded compensation packages up to market value.

• Electing to Retire Early. Not every CEO wishes to continue with the new organization. When a leader chooses to retire early, third-party merger advisors work to ensure they’re compensated with very good packages as they leave, enabling them to meet some of their retirement goals so they can start the next chapter in their lives without worry or unnecessary stresses.

 

Don’t let the word “merger” scare you out of the phenomenal opportunities a partner organization could offer your credit union. You’re the CEO; look past the fear and embrace the opportunities! Your team will follow your lead if you show them the way.

If you’re uncertain as to how your current role as a CEO will transition to your newly formed organization, reach out to a team of third-party credit union merger advisors who can help you navigate the waters successfully.