By Ray Birch
SANTA ANA, Calif.–The president of the Orange County, Calif., branch of the NAACP is asking SchoolsFirst Credit Union to make changes to its board of directors and its board election processes.
Dr. Fred Calhoun, a 40-year member of the credit union, spoke with SchoolsFirst CEO Bill Cheney this week about what he termed a lack of racial diversity on the credit union’s board, and Cheney told Calhoun changes will likely take place.
The conversation occurred after Dr. Barry Resnick, a long-time member of SchoolsFirst FCU here, published an opinion piece on a local news and community website claiming the CU’s board has created an “exclusive private club” and has made it “nearly impossible for anyone to serve.” The piece further alleges the $21.6-billion CU’s board lacks any diversity, especially for a CU of its size.
“I told Mr. Cheney a lot of people are concerned about the board’s lack of (racial) diversity and he indicated that he was aware of the concern and said the credit union plans to do something about it between now and this time next year,” Calhoun told CUToday.info.
In Resnick’s posting, under the headline “Schools First…Diversity Last,” he suggests that while the demographics of Orange County, Calif., have changed, the board of directors of its largest financial institution have not. Resnick, who is also 40-year member of the credit union, pointed to the SchoolsFirst FCU’s annual report, stating that while the CU has grown to have more than 1.1-million members and the annual report states “your community is our community,” and further talks about its support for diversity, a photo (see below) in that same annual report “doesn’t seem to fit.”
SchoolsFirst board of directors
Change is Urged Now
Calhoun explained Cheney told him changes may have to take place during normal board elections, the results of which would be shared next May. Calhoun told CUToday.info he hopes the credit union acts long before then and that he has some suggestions to share with Cheney.
“I'm going to get back with Mr. Cheney and tell him that we have a person of color who’s qualified and interested in being on the credit union’s board now,” Calhoun said. “There are a lot of organizations making pretty aggressive moves now to drive greater diversity. And I already told Mr. Cheney his organization seems to be a little bit behind the calendar when compared to what other people are trying to do.”
Dr. Fred Calhoun
Calhoun said he would be open to the idea of a special election to get greater racial diversity on the SchoolsFirst board before next May. Calhoun recognized that would likely mean asking one or two members of the current board to step down before May.
During an interview, Cheney said it’s possible board changes could happen before May.
“Yes, that is possible, but we don't have any open (board ) positions right now,” Cheney told CUToday.info, noting the board has had five new directors in the last six years.
A Challenge to Nomination Process
In Resnik’s article, he said that while it’s true anyone can serve on the board, a nomination requires a petition signed by 500 members, an application packet—“with materials only available on request for a short period of time”—and approval of a nominating committee whose names are “cannot be disclosed.”
“The nominating committee then determines the names to put ‘in nomination,’” Resnick wrote. “For years only one name per open seat has been recommended avoiding any elections. From 2004 through 2018 there were only three open seats. By creating a path riddled with obstacles with no term limits, the SchoolsFirst board of directors have created a culture of exclusion that ensures these same seven individuals will be able to continue sitting as directors for their lifetime while controlling the process for those who may serve alongside them.”
Cheney told CUToday.info SchoolsFirst is currently making some changes in its board nomination process.
“We are opening up our nominating committee process to provide opportunities for more people to volunteer,” said Cheney.
Bill Cheney, Schoolsfirst
‘Not as Liberal as People Think’
Cheney said he felt he had a good conversation with Calhoun.
“Our board is diverse in many ways,” Cheney told CUToday.info. “We have seven men and six women. And our board reflects our membership in many ways, including diversity of backgrounds in education.
“But we do have work to do in terms of having our board better reflect our SchoolsFirst team, which is extremely diverse, as well as our membership,” continued Cheney, who added the credit union currently has three advisory boards to broaden its base of volunteers.
Calhoun said he was not surprised by the lack of persons of color on the SchoolsFirst board.
“A lot of businesses out here don’t have that on their boards,” he said. “A lot of people think this is liberal California, but it's not as liberal as people think.”