By Ray Birch
WASHINGTON—More women are making their way into the top spot at larger asset-size credit unions, and one human resources expert pointed to two key reasons for the growth.
Samira Salem, CUNA’s vice president of diversity, equity, and inclusion, said more women in recent years are becoming credit union CEOs because more women are now on CU boards, while there is also a growing pipeline of female talent being groomed for leadership positions.
Those findings are from CUNA’s Women in Credit Union Leadership study.
Salem emphasized not only are the number of women in CEO roles among the large shops increasing, but the credit union movement is leading the way among most industries in the percentage of female leaders, especially when compared with banks.
“In 2016, 14% of credit union CEOs from $1-billion to $5-billion asset size credit unions were women. Whereas, when you get to the recent data they're at 18%, so there is an increase,” said Salem. “And, in 2019, Mary McDuffie took the helm of Navy Credit Union, the largest credit Union in the nation. That says a lot.”
Salem said the data show women are also taking a greater percentage of CEO roles at CUs from $750 million to $1 billion in assets.
“The credit union movement has a real commitment to diversity, equity and inclusion,” said Salem. “It is not only a commitment, it's part of the ethos of how credit unions operate. You are seeing this show up in the numbers. There is a real intentionality around diversity equity and inclusion, which has become our eighth cooperative principle.”
CUNA’s latest report shows the percentage of women leaders (51%) in credit unions has remained about the same since 2019 (52%), the last time the study was conducted.
A Key Point of Focus
But the key data point on which to focus, according to Salem, is that credit unions are leading the way among most industries in hiring female leaders, far outpacing banks.
“Women are significantly underrepresented in executive positions across all industries, particularly within the financial services sector,” said Salem. “America’s credit unions are bucking this trend and our research shows that women not only have a seat at the table, but also play a major role in the financial success of the institution.”
While 51% of credit union CEOs are women, only 3% of bank leaders are female, data show.
“And when you look at Fortune 500 companies, 7% of CEOs are women,” explained Salem. “Data show that more women are likely to rise to the CEO level at credit unions than any other type of company— whether it be a bank or Fortune 500 company.”
More Women on Boards
Samira Salem
CUNA’s research also found that more women are taking seats on credit union boards, with 33% of all CU board members now being female, compared with only 16% of bank boards. Salem said that bodes well for the future of women who want to advance within the movement.
“This is absolutely an important piece of the puzzle,” said Salem. “Credit union boards are driving this change, which is critical. Having women’s voice on the boards has been critically important.”
Salem said not only is this important for the advancement of women within the credit union industry, but the trend also leads to CU boards being more attuned to the needs of their diverse memberships.
In addition to greater female representation on boards, Salem said what will lead more women leaders to be selected for CEO roles in larger credit unions–and throughout CUs of all asset groups–is a young pipeline of talent.
“If you zoom out and look at what's happening with Millennials and the pipeline for talent…Right now more women are graduating from CUNA schools and from finance and economics programs, outpacing what we have seen in the past,” said Salem, who also pointed to word done by organizations such as the Global Women’s Leadership Network. “This didn't happen before. Now we have this strong pipeline that’s fueling this trend of growth in women CU leaders. The pipeline piece is so incredibly important.”
Remaining Obstacles
What obstacles continue to be in the way of the growth of women leaders among credit unions?
“We need to get the word out,” she said. “We need to ensure that this message is not only reaching other credit unions but also reaching our talent of the future, and that they’re hearing the story about how credit unions are an attractive option for them.”
Salem acknowledged the death of George Floyd at the hands of the Minneapolis Police that sparked heightened civil unrest in the U.S. and a greater focus on racial equality, has also led to a stronger focus on diversity within credit unions.
“We've been on this path for a while, but the George Floyd incident certainly was a watershed moment for our nation and our credit unions,” said Salem. “I think it really did help to underscore that the reason why we have committed to DEI, and why it’s our eight cooperative principle.”