LOMPOC, Calif.–The former CEO of the $1.1-billion CoastHills FCU is alleging he has been terminated in part because he filed a complaint after a board member attempted to make his personal weight loss part of his 2018 performance goals.
In addition, former CEO Jeff York alleged in a statement that five other members of the senior management team and two board members have left the credit union over a two-week period due to “interference in the day-to-day operations” of CoastHills by four members of the board.
CoastHills’ interim CEO, however, has responded by disputing many of the statements made by York, including that multiple members of the senior management team have departed.
In a statement to CUToday.info, York alleged that in 2017 one board member submitted a proposal that would link his annual bonus to a weight loss goal. In response, York said he filed a “harassment complaint” in September 2017 after “repeated attempts” by the same board member to “make the illegal weight loss proposition” part of his 2018 goals.
York told CUToday.info he filed the complaint with both the credit union’s board and its Human Resources department.
'Hard to Believe'
“It is hard to believe that any intelligent business person could think that such a proposal would be appropriate,” said York in the statement “Can you imagine if I was a woman and she was a man?”
York alleged that the board reprimanded the board member following “disparaging comments made about” him at public event in the credit union’s home market of Lompoc, Calif.
York said that following his complaint other members of the board became “irate” after he consulted with his attorney, which resulted in the creation of a “hostile work environment” and “retaliatory actions” against him. York said that he has not to date pursued any legal action beyond meeting with the attorney.
“Part of the retaliation included an investigation of an alleged anonymous complaint sent to the federal and state regulators,” said York in his statement. He said he has not seen the alleged complaint nor is he aware of what it might entail.
As CUToday.info reported here, York was placed on administrative leave on Feb. 6. He said that on March 16 had had been terminated “without cause.”
The board has named Dallis Widick, who retired from CoastHills in 2015, as a temporary replacement as CEO.
In his statement York said the board has also “pushed to have several other executives” at CoastHills “terminated” due to their support for the former CEO, including EVP/COO Dave Upham, SVP/HR Lisa Harlow, SVP-Business Services Rob Covarrubias, SVP-Marketing Scott Coe, and Executive Assistant Linda Van Dyke. York said all of those individuals left the credit union over a two-week period.
Allegations Are Disputed
Widick, however, said the report of those departures is not accurate and that only one person has left in the wake of York’s departure.
York alleged that four members of the board are “operating outside of proper governance standards with their interference in the day-to-day operations” of CoastHills, and that as a result newly-elected board member Linda Steger and long-time board member David Richardson have both resigned from the board.
Widick said the board member departures are unrelated and that both stepped down from the CoastHills’ board for personal reasons.
York said he has spoken to both the state regulator, the California Department of Business Oversight, and with NCUA in relation to events at the credit union.
York had been president/CEO at CoastHills for 14 years, overseeing growth to $1.1 billion in assets from $350 million. During his tenure York said the credit union expanded its FOM to five counties along the central coast of California, conducted a merger, expanded its branch network, launched a community foundation and business services program, and “helped hundreds of members keep their homes during the recession.”
Point/Counterpoint
“It is amazing that a healthy, vibrant credit union can be derailed by a few misguided volunteer board members proposing illegal weight loss goals, creating a hostile work environment, and illegally retaliating,” alleged York in his statement. “It should never be about someone’s weight, body shape, skin color or religious beliefs. It should be about leadership, execution and results. CoastHills is a top-performing credit union with 68,000 members and 250 employees. The results should speak for themselves.”
Widick disputed several of the statements made by York, and said the former CEO was terminated as the result of a majority vote by the credit union’s board. “It was not related to any claim of weight issues, and we’ll leave it at that out of respect for Mr. York’s privacy,” Widick said. “The board decided it was in the best interest of the credit union, its members and staff to make an executive change.”