Credit Union Journal: FBCU CEO also on Board of Directors, did not tell members (4-21-08)

5/12/2008 1:31:09 PM

Dual CEO Roles Cause Confusion at Failed Convert First Basin CU

Credit Union Journal | Monday, April 21, 2008

ODESSA, Texas – Members seeking to recall directors involved in the failed conversion of First Basin CU to bank were surprised to find they wouldn’t be told which three directors were up for reelection at last week’s annual meeting until immediately before the ballot.

None of them were told before the meeting that two of the directors were Vice Chairman Annette Snowden and Chairman and CEO Shem Culpepper, the two main drivers in the failed conversion. So it came as a surprise that the challengers–all members of the group opposed to the conversion–were only allowed to give three minute speeches after Culpepper had already spoken for an hour as while he was conducting the meeting.

The unusual dual role for Culpepper, though permissible for both state and federal credit unions, caused some head scratching among the losing candidates for the board.

"There’s got to be something wrong with that, I mean, he’s running the meeting as both the CEO and the Chairman of the Board," said Danny Armstrong, one of the losing candidates, who represented Save First Basin CU, the group that defeated the conversion to bank. Armstrong found it particularly frustrating because he said the fact that Culpepper was one of the directors running for reelection was not announced till right before the vote.

None of the names of the three incumbents running for reelection was listed in written materials mailed to members, or that a board election was being held at the meeting.

With a heavy attendance of credit union employees, the three incumbents easily won reelection at the meeting.

Credit unions officials did not return phone calls.