NCUA: Directors Can Delegate Authority, with Limits
February 1, 2011
March 10, 2011
In a Letter to Federal Credit Unions (11-FCU-02), which discusses the general authorities and duties of directors in new Section 701.4, the National Credit Union Administration (NCUA) said an FCU’s board can, with some limitations, delegate to its CEO the authority to hire, fire, and compensate subordinate employees, including other management personnel.
NCUA General Counsel Robert Fenner recently explained in a legal opinions letter that if a board delegates to the CEO the authority to hire, fire, fix the compensation of, or discipline other senior managers, the board must place “appropriate standards and controls on such delegated authority.”
The letter also addressed other clarifications of the agency rules regarding the duties of federal credit union directors. Read the letter.