By Ray Birch
WASHINGTON—Seeing credit unions through this year’s tough tax fight is one of Jim Nussle’s top priorities, America’s Credit Unions president and CEO says.
Nussle, who recently announced his intent to retire as America’s Credit Unions’ chief, spoke with CUToday.info about his decision to step down and what’s ahead for ACU.
In a Q&A with CUToday.info, Nussle discussed various topics, including his decision to retire, the challenges facing the industry, the importance of spending more time with his family and the possible timeline for choosing his successor.
CUToday.info: What's ahead for you and America's Credit Unions?
Nussle: My full focus is obviously on what's going on in advocacy, and there's a lot going on there. So much of it is focused on the tax battle. We're in the thick of that now. But also on our regulatory agenda we’ve had some big successes already this year with regard to the CFPB and other matters. I think we're well focused on what we need to do for our members.
I just came back from a meeting with all of the league presidents. We were talking about those different battles, how we're doing and mustering the resources and coordinating our activities. We’re speaking with a united voice on behalf of credit unions, whether it's at home, in their districts, in their credit union buildings. Whether it's out in Washington, in hearings, or even in closed-door meetings the credit union difference is being heard.
So, if a member of Congress is thinking about taxing credit unions or going in a different direction, they hear the voice of their credit union members. They hear the voice of their voters when they are assembling the ingredients they're putting together when they're writing laws and bills.
CUToday.info: Why is the tax fight so tough this year?
Nussle: It's different this year. It’s not so much that it's harder or more intense, or anything else. Having been on both sides now—I've been in the rooms in Washington. I was on the tax writing committee. I was the budget committee chairman. I've put these bills together. I was the one who called the meetings when they were deciding what's in and what's not when they're writing tax bills. I can tell you that when I was there the discussion was what's the right tax policy, what's the right way for us to grow the economy, and what's the right way for us to help ensure that certain policy goals are achieved.
I am concerned that too often today, in Congress, it's about how can we pay for tax cuts and how can we tax people who aren't going to squeal very loudly when we tax them. And that's a different conversation. The good news for us is that I think we can squeal pretty loudly. We've got a dynamic message about how we contribute one-quarter of a trillion dollars to the economy and GDP. That's amazing what credit unions do at a time when half the people in the country are living paycheck to paycheck.
Ninety percent of credit union members say their credit union has helped them in the last year with financial well-being. We are getting it done, and if we can get that story in front of everybody who is not just concerned about who they can’t afford to offend politically, we're going to do just great. I'm encouraged, but I'm guarded in that encouragement, I have to say.
CUToday.info: Where were you and what were you considering when you finally made the decision to retire?
Nussle: It was really a metamorphosis, and not something that came to me in a flash-of-light moment. So, it was more of a how than a when. As I said, I want to simply spend more time with my family. And, as I look in the mirror these days, I don't see the same young guy I saw many years ago. I feel young. I certainly have the energy and the experience and everything else. I don't feel like I've lost a step. This job is a great gig. Credit unions are fantastic and I am so proud to represent them. I always wondered why 65 seemed to be a magic number for people, and the closer I've gotten to it the more I've started to realize that is the time when you start doing the math as to how much more time you have left.
I lost my dad this last year, and that was an experience. When you're sitting in church and looking around and doing the math with your family, and you're saying, wow, dad was 87 years old. So, how much time does that give you? And then, obviously, I had a conversation with my wife, Karen, and with my kids.
The ACU board has been extremely helpful and supportive of that conversation. I think succession planning needs to be more in the forefront for all of our professionals and leaders, as well as for the boards that govern them.
CUToday.info: Was deciding to retire difficult?
Nussle: It was very hard. I've been working since I was 14 years old. So, it's hard for me to envision what the future looks like than it is to understand the present. Anytime you jump off a platform and you don't know what's below you, you probably are going to have a certain amount of trepidation. Somewhere, in the back of my mind, I was hesitating because I really love what we all get to do together. It has really been the honor of my life to do this. I mean that very sincerely.
CUToday.info: What stands out to you in your career at ACU and CUNA?
Nussle: Maybe it sounds cliché, but I believe we have more work to do. I will say coming from politics it's not unusual for political people to believe the world revolves around them. But you learn very quickly that the whole is greater than the sum of its parts. When it comes to credit unions, that's what it means to have cooperative superpowers. You do absolutely nothing alone.
Nothing gets done because Jim Nussle did it. It's because you are able to help build or lead the resources to do the things you get to do. I'm proud that I learned along the way. I contributed to different things—supplied maybe some ingredient to them. That's what I'm proud of. But I think there’s more to come. And it may be as simple as just making sure people understand the credit union difference so we don't change the credit union model and become something other than a not-for-profit cooperative financial institution.
CUToday.info: What was your biggest challenge in your 11-year career at CUNA/ACU?
Nussle: Again, in credit unions and in the world of cooperatives, you do nothing by yourself. Everything you do that is worth doing is done with literally a brother or sister standing next to you saying how can I help, how can I add value, how can I lift you up, how can you lift me up. The old adage is if you want to go fast go alone. But if you want to go far, go together. It takes leaders who are hard-charging folks, particularly when you come from egocentric industries—as have many of us who have come to credit unions from the outside. You learn very quickly if you're going to be successful, you do nothing by yourself.
CUToday.info: The merger between CUNA and NAFCU, how easy or difficult has that process been?
Nussle: Again, I can see my fingerprints on it, but I also can see everyone else's fingerprints. I can see everyone else's input. I can see everyone else's feedback and ideas. I can hear conversations that go back 12 years to my very first meeting with CUNA when I was asked the question, why do we have two great national credit union trade associations? I didn't know how to answer that because I didn't have the history. It's a perfect example of how you have to put your ego aside and approach something with humility.
So, how can I contribute? How can I help make something better out of something that is already really good? That was the merger process. I can do a much better job of telling you what everyone else did to contribute to where we are today than to than to tell you what I did.
CUToday.info: Is there a timeline for you to step down?
Nussle: It is literally what we previously said it is. I did not want the board to be to be rushed into this process, nor would they have been. I wanted to give them the luxury of being able to do a search that this kind of position deserves.
This is one of the most sought-after trade association positions in Washington. It is one of the top five trade associations of its kind. It's one of the most influential positions in financial services—both our legacy organizations as well as the new America's Credit Unions.
You have to cast a net, so to speak, far and wide to find the best leaders possible. And that will take some time. We've got a great search firm in Korn Ferry. We selected a committee of our board members to help focus on this effort and go through the candidates.
I would say, very typically, this could run somewhere in the order of six months. I would think that six months for a search like this would not be unusual, and then anywhere from 60-90 days to make a transition.
I wanted to make sure we saw this tax fight through. There are some fights that will always be there, they're perennial. But, I wanted to make sure we successfully address this tax fight. To be clear, I'm not leaving now during the tax fight. That's just not the case.
CUToday.info: What is needed in the next ACU leader?
Nussle: I have my opinions, and I will share them with my board, when and if they ask me. There's already been some of those kinds of conversations. The credit union movement and industry have excellent perspectives. I believe the board will reach out and listen to a number of sources.