By Stacy Augustine
Leadership transitions are inflection points. For credit unions, especially those certified as Community Development Financial Institutions (CDFIs), they’re not just operational changes, they’re moments of opportunity.
And with a wave of retirements cresting (about a third of credit union CEOs were age 60+ last year, per the 2024 Gallagher Executive Compensation and Benefits Survey), we’re seeing the urgency rise. Boards and executive teams must lead with strategy, not scramble.
Whether your credit union is large or small, CDFI-certified or not, one thing is certain: the most successful CEO transitions begin long before a resignation letter is delivered.
Don’t Wait to Plan for the Inevitable
Leadership development often takes a backseat to daily demands—especially for lean teams. But let’s be clear: delayed succession planning is a risk. And increasingly, it’s a risk regulators expect you to manage.
Only 54% of credit unions have a succession plan, according to America’s Credit Unions. And that percentage drops as credit union asset sizes decrease.
Lack of succession-readiness is one reason the NCUA recently finalized its new succession planning rule, effective January 1, 2026—guidance that provides a necessary reminder that mission continuity demands forethought.
Without a plan, even well-meaning boards can fall into rushed recruitment cycles, leaving long gaps at the helm just when the credit union needs steady leadership most. That’s especially critical for CDFI credit unions, whose leaders usually balance higher operating costs with member service, regulatory compliance and strategic innovation.
CDFIs Need Leaders Who “Get It”
CDFI credit union CEOs are a special breed. They go beyond spreadsheets and bottom lines to understand people—often those who’ve never been served well by traditional finance. They design products for real-life needs. They do the hard work of transforming financial exclusion into opportunity. They are the type of leader that understands that higher staff costs or greater delinquency rates are part of managed risk when serving these members. And importantly, they have the confidence to demonstrate that to an examiner.
That’s why CDFIs and other highly mission-driven credit unions need an experienced partner at their sides when it’s time to find their next leaders. The right consultant understands how to identify those qualities listed above in a candidate, and where those candidates can be found.
Starting that relationship early (well before a vacancy arises) allows your consultant to truly understand your credit union’s specific culture and goals. Then, when the time comes, they’re not starting from scratch. They’re tailoring a search that reflects your future.
Mission-First Recruiting Starts with the Right Mindset
Recruiting for a credit union CEO isn’t just about qualifications on paper. It’s about aligning with your values, community, culture, and long-term goals.
Successful CDFI credit unions are intentional about maintaining and growing their impact. When it’s time to find a new CEO, these credit unions are looking for more than operational competence. They want leaders who can nurture community relationships, manage grant portfolios, and stay mission-focused under pressure.
An experienced recruiter will craft a process that surfaces candidates who bring both the hard skills and the heart for the work. And yes, the process takes time—expect six months, start to finish.
Elevate the Candidate Pool—And the Possibilities
A strong recruiter will present you with a slate that makes the board’s job hard, but in the best way. That’s how you know the search succeeded. The final decision isn’t “who’s qualified.” It’s “who’s most transformative?”
Diversity matters. Experience matters. Local knowledge matters. A recruiter aligned with your mission will ensure all those boxes are checked—and balanced.
Compensation Strategy, Be Realistic, Not Reactive
Once finalists are identified, it’s time to discuss compensation with an eye on the market and your competitors. Boards replacing a long-tenured CEO may find themselves with sticker shock. That’s why it’s critical to benchmark compensation early in the process, considering factors like asset size, regional cost of living, service area demographics and what the credit union can pay.
Your recruiting partner should guide you through developing a compelling total compensation package that reflects your budget and expectations, including bonuses, relocation allowances and work flexibility.
Don’t Let Leadership Change Disrupt Mission Momentum
Leadership transitions don’t have to mean mission drift. With intentional planning and the right executive recruiting partner, your credit union can choose a leader who understands your community, advances your goals, and carries your impact forward.
Stacy Augustine is president of CU Strategic Planning. For info: www.custrategicplanning.com.