Governance Challenges in Credit Unions: Insights and Recommendations

Dionne Pohler, with Nora Russell

 Introduction

The Filene Research Institute and the Canadian Credit Union Association recently commissioned me to write a report examining the characteristics of the well-governed credit union and exploring the values and risks associated with co-operative governance models. Below, I summarize some of the key insights. You can download the full report on which this summary is based here.

Recent mergers and consolidations in the credit union system have led to a decrease in the number of credit unions and an increase in the size of the largest ones, which collectively manage tens of billions of dollars in assets and serve millions of members across the country. As credit unions diversify and grow, they face more risk and greater competition, as well as challenges to the effectiveness of their board governance. Continue reading

Governance Changes at MEC: Should Other Co-ops Take Note?

Aasa Marshall

MEC — a large Canadian retail co-operative that specializes in outdoor activity equipment — implemented a number of controversial changes three years ago to strengthen the knowledge and skill sets at its board table and to ensure its governance structure could continue to guide the growing company.

Formerly known as Mountain Equipment Co-op, MEC was started by a small group of friends from the University of British Colombia who found they couldn’t buy good quality climbing gear in Canada. Since its inception in 1971, it has grown to twenty stores across the country, with 4.5 million members and $366 million in annual sales. With this growth and the expectation of further growth, the co-op felt it needed a more experienced board to navigate not only its scope, but also the increasingly competitive market for the goods it sells. Continue reading