Credit Union Leadership
By Joyce Moed

DURHAM, N.C.–What’s white, male and bald all over? That would be credit union leadership, according to one credit union CEO who doesn’t fit that mold.

Luis Pastor, CEO of the 50,000-member Latino Community Credit Union here, and a member of the National Latino Credit Union Professional’s board of directors, said that while he does believe it is important for national boards to reflect the diversity of its members, he doesn’t think it is happening as far as the Hispanic community goes. NLCUP is an organization started by the National Federation of Community Development CUs in 2004 dedicated to increasing the representation and participation of Latinos in the credit union movement.

"It’s male, white and bald," Pastor said, of the make-up of the national credit union leadership. "Something needs to be different. We need to represent our diversity and we don’t do that."
Part of the reason for the lack of Hispanic board members may be attributed to a lack of motivation to apply for the board positions, Pastor said.

"You go there and you are just the token minority," he said. "It’s not appealing to me. You don’t feel you are going to make a difference. Why even try? Nothing is going to change. But something needs to change. There needs to be more opportunity for people of all colors."

Perhaps what’s needed is one "talented Latino" to step up, Pastor said.

"But these people don’t feel attracted to run," he said. "That person would just be one isolated voice. Why even try? I don’t even consider running. Why waste X number of weekends a year, when nothing is going to change?"

That said, Pastor said something needs to be done to motivate the Hispanic community to run for the national boards, and it needs to be done quickly.

"If nothing changes, we’re going to be in big trouble," he said.

Carlos Calderon, chair of NLCUP, and president/CEO of OAS Staff Federal Credit Union in Washington D.C., agreed.

"Otherwise there is the risk of disenfranchising a large group of people," he said.

"I believe Hispanics are very much under-represented in leadership within the credit union industry," Calderon added. "According to CUNA statistics, Hispanics constitute 15% of the total U.S. population at present. Recently I served on the Maryland and D.C. Credit Union League board, as one of nine. There is no Hispanic person currently on that board."

Calderon said there are many things that can be done to increase the number of Hispanic people on these boards.

"We can foster, promote, develop and encourage people to be involved based on their own capabilities, in order to attain a greater participation of minorities in leadership positions in the credit union movement," he said. "Otherwise, we run the risk of disenfranchising large groups of minorities because: 1) they don’t feel represented, and 2) we are not addressing their core issues."

Based on CUNA statistics, Calderon noted, by the year 2050 Hispanics will compose 25% of the U.S. population.

"It is extremely important to engage minority groups," he stressed. "There is not sufficient minority representation at all levels, including committees and boards of directors."

Danielle Chatfield, chair of the advisory board of CUNA’s Hispanic Resource Center, and community affairs director of the $74 million MidState Educators Credit Union in Columbus, Ohio, said it’s important for any board to attempt to recruit qualified candidates that represent various demographics of the group the board serves. (CUNA’s Hispanic Resource Center Advisory Group is a group of credit unions dedicated to helping credit unions attract and serve new members of the Hispanic community.)

"Having said that, for credit union boards in particular the equation gets very complex when you try to represent a whole host of diverse groups," she said. "National credit unions boards are often trying to balance geographic diversity, asset-size diversity, background diversity, gender diversity, and now cultural diversity, amongst other requirements."

This causes a big challenge for these boards, Chatfield said, "but a number of national boards representing credit union interests have done a good job trying to reconcile all those varied viewpoints. There are a number of boards where Hispanics are represented. The CUNA Board and NCUF, in particular, have Hispanic representation.

Chatfield said in order to get more board members representing any demographic group, it not only requires the boards to seek diversity, but it also requires members of the various demographic groups to volunteer to get involved.

"There are a number of efforts across the U.S. to mobilize Hispanic involvement and that is definitely a helpful step toward future representation in decision and policy-making bodies," she said. "Ultimately it comes down to individuals across the country stepping up and volunteering to roll up their sleeves and do some hard work. Luckily, that trend has already started and there is a host of talented individuals across the country representing various backgrounds that are playing roles at the local, state and national levels."

However, Chatfield said there is always room for additional players who have not yet taken that first step. "But as a movement we have a history of bringing an increasing level of diversity to the table," she said.

One national organization leader said that its board has historically been diversified.

"Our board has African-American, Latin and Asian-American members," said Cliff Rosenthal, CEO of the Federation, in New York. "We are almost equally divided between white and non-white."
Rosenthal said diversity among the board is important for any member organization, because it’s important to reflect its members.

"The credit union movement–if it’s going to thrive–needs to look like America, and the face of America is certainly changing."

www.cdcu.coop
www.latinoccu.org
www.cuna.org
www.educu.org
www.ncuf.coop
www.natfed.org

To read previous stories in the series, subscribers can go to www.cujournal.com and search the following phrases:

National CU Leadership Not A Rainbow Of Colors
CU Leaders Weigh In On Bringing Diversity To Movement

To read the original series on diversity from June 26, 2000, subscribers can go to www.cujournal.com and search the following phrases:

Where’s The Diversity?
O.U.R. CU Makes Good On Community Outreach Claims