Credit union regulations and laws continue to be in constant flux. In 2025, federal lawmakers introduced a wave of policy rollbacks across the financial sector—all while challenging long-standing protections like tax exemption for CUs. At the regional level, scrutiny has intensified as well, with states like Tennessee even banning credit union acquisitions of banks.

Predicting the next regulatory change has become increasingly difficult, forcing C-suites to remain agile, informed, and proactive about legislation. The resulting operational shifts are transforming executive talent strategies, from the types of leaders in demand to recruitment tactics at play.

Rising Demand for Risk and Compliance Leaders

The volatility in regulatory requirements has elevated risk management and compliance roles from back-office functions to anchor leadership positions. Our executive search team at AJ Consultants has seen tremendous demand for positions such as Chief Risk Officer (CRO) and Chief Legal Officer (CLO). Reflecting their strategic importance, many of these executives now have greater influence in their organizational hierarchies, with direct reporting lines to the CEO.

Credit unions are investing in these leaders to stay protected from fines, reputational damage, and other penalties—all while strengthening decision-making across the organization. In particular, they’re seeking risk and compliance executives who bring:

• Deep regulatory expertise: Understanding the requirements set forth by the National Credit Union Administration (NCUA), Bank Secrecy Act (BSA), Anti-Money Laundering (AML), consumer protection laws, and other federal and state-specific mandates.
• Forward-thinking capabilities: Anticipating potential regulatory shifts and addressing them through robust scenario planning.
• Cross-functional expertise: Translating how complex credit union regulations impact operations while collaborating with key stakeholders to balance efficiency and compliance.

To win executives who check all these boxes, credit unions must budget for competitive salaries amid accelerating demand. Our 2025 Salary Guide found the average CRO now earns $275K to $420K—inching above Chief Financial Officer (CFO) and Chief Technology Officer (CTO) salaries.

When setting executive hiring priorities, it’s essential to ensure compensation strategies align with market realities.

A Growing Emphasis on Adaptability

Across all executive positions, credit unions are prioritizing adaptability and agility. When credit union regulations and laws fluctuate, the financial institutions that can quickly pivot strategies and operations in response tend to thrive. This requires leaders who can conduct effective decision-making—even with ambiguous or incomplete guidance from regulatory bodies—and an understanding of how technology can facilitate compliance.

Change management experience is also proving desirable. When regulatory shifts occur, experienced leaders tackle resistance or burnout by motivating employees with a shared vision—elevating the entire organization’s adaptability.

These new considerations are certainly reshaping the hiring criteria for credit union leadership roles, but they’re also transforming internal leadership development programs. To rise above the competition for top talent, strategic credit unions are finding new ways to build executive adaptability, such as providing continuous education on soft skills and building cross-functional taskforces to address regulatory challenges.

Strategic Recruitment from Non-Traditional Sources

Today, finding the right leaders often means looking beyond traditional talent pools. Whereas credit union executives typically come directly from the industry, regulatory complexity is driving financial institutions to cast a much wider net.

Some credit unions are now sourcing executives from:

• Banking regulatory agencies: Credit union leaders are showing interest in former NCUA, FDIC, and state regulatory officials with insider perspectives on examination priorities and regulatory development. The opportunity here is especially strong amid government layoffs and voluntary separation programs.
• Large regional banks: For credit unions in growth mode, executives with experience navigating comprehensive regulatory frameworks at scale.
• FinTech compliance leaders: Professionals who are skilled at balancing innovation with compliance in fast-evolving markets can be an excellent fit in a credit union environment.
• Legal and consulting backgrounds: Attorneys and consultants with specialized financial services regulatory expertise can lend indispensable expertise to credit union leadership.

This cross-pollination is introducing new perspectives to credit union leadership teams. These non-traditional executives bring valuable regulatory insights—though it is critical to ensure alignment with the community-oriented culture of credit unions before finalizing hiring decisions.

Evolving Partnerships with Executive Search Firms

What hasn’t changed is the fact that executive search firms are indispensable when critical leadership roles need to be filled—especially when confidentiality is key. However, credit unions are increasingly seeking partners in the hiring process, rather than recruiters who simply meet written requirements.

At AJ Consultants, for example, we’re collaborating with credit unions in increasingly sophisticated ways. We’ve joined board discussions to calibrate priorities and provide compensation advisory that keeps CUs competitive and on budget. Plus, we leverage tailored candidate screening processes like the Berke Assessment to help assess competence and cultural fit.

As specialized recruiters in the credit union space, we also bring the industry insight and targeted network you need to move quickly and confidently in your executive search.

Optimize your executive talent strategy for the unpredictable future of credit union regulations and laws. Connect with AJ Consultants today.