What Boards Must Demand from Their CEOs in the Next 24 Months
Cowen Partners Executive Search President and Founding Partner Shawn Cole published his latest article in Credit Union Times, with a direct challenge to credit union boards: test your CEO’s capabilities now, or discover their weaknesses when it’s too expensive to fix.
In his article “The Board’s CEO Test for the Next 24 Months,” Shawn argues that the coming period of rate volatility, normalizing credit conditions, and cost pressure will expose leadership gaps that looked invisible during favorable market conditions.
Boards that wait to assess their CEO’s readiness will pay for it.
Shawn lays out six non-negotiable capabilities every credit union CEO must demonstrate:
1. Credit Migration by Segment, Not Averages
Portfolio averages hide problems until damage is severe. CEOs should report credit migration by segment—auto loans by vintage, credit cards by score band, commercial loans by industry—and track movement between credit grades before delinquencies hit 90 days.
If your CEO can’t provide this detail without checking with staff, they don’t understand their credit risk.
2. A Credible Expense and Productivity Plan
“We’ll find efficiencies” isn’t a plan. Shawn pushes boards to demand specifics:
- Which positions stay unfilled?
- Which vendor contracts get renegotiated?
- Which programs get eliminated?
- What’s the timeline, including transition costs?
- How do you maintain service quality while cutting?
CEOs who can’t answer these questions are guessing, not planning.
3. Building Successor-Ready Talent
Most boards wait too long to think about succession, then scramble when the CEO gives notice or has a health issue. Shawn asks:
- Who are the actual internal candidates for CEO?
- What development are they getting?
- Who’s ready for other C-suite roles?
- What’s the timeline for readiness?
CEOs who take succession seriously identify high-potential leaders early and give them stretch assignments that build real capability.
4. Rate Volatility Response Plan
The next 24 months will bring unpredictable rate changes.
Shawn wants boards to ask:
- What do you do if rates drop 100 basis points?
- What if they rise another 100?
- What if they stay flat with an inverted curve?
CEOs should have specific actions tied to specific triggers—when does deposit pricing change, when do you reduce wholesale funding, when do you stop originating longer-term fixed-rate loans?
“We’ll monitor and adjust” isn’t good enough.
5. Capital Planning Under Stress
CEOs should show capital projections under stress scenarios, not just base case assumptions. What happens if charge-offs double? If loan growth accelerates? If deposit outflows require expensive borrowing? If regulatory minimums increase? CEOs who only show base case projections are either overly optimistic or avoiding difficult conversations.
6. Clear Communication During Adversity
Boards will learn more about their CEO in the next 24 months than in the previous five years. Under pressure, differences emerge fast. The CEO who communicates problems early and clearly without defensiveness is the one who will navigate volatility. The one who manages perception instead of reality will make things worse.
The article serves as both a practical scorecard for boards and a wake-up call about the leadership challenges credit unions will face as market conditions shift. It’s essential reading for any board evaluating whether their CEO is ready for what’s coming.
Read the full Credit Union Times article.
About the Credit Union Times
Established in 1990, CU Times is the credit union community’s leading news source. We set the standard for credit union journalism excellence and attract more paid advertising than any other credit union media.
Published weekly, its main focus is to provide comprehensive, objective coverage of the latest credit union news. It also offers extensive on-site conference coverage, people features, statistical analysis and expert technology coverage.
With a growing stable of products, including events, webinars, and custom publishing opportunities, Credit Union Times offers readers and advertisers many ways to get connected with the dynamic credit union industry.
About Cowen Partners Executive Search
At Cowen Partners, we stand at the forefront of the credit union executive search industry, empowering companies to thrive and excel in their growth, revenue, and market presence.
We specialize in identifying exceptional leaders and placing them in key positions to drive success. Our team of seasoned executive recruiters collaborates with organizations of all sizes, encompassing both public and private enterprises, pre-IPO ventures, and non-profit entities.
Through a meticulous and discerning approach, we unite handpicked candidates with companies in pursuit of the most exceptional executive talent, representing the top 1%.
With the support of our experienced senior partners, we execute a diligent and efficient executive search process, ensuring leadership placements within a remarkable six-week timeframe.
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