This week's credit union merger news may have been on the delayof a Los Angeles megamerger and a three-way deal in Ohio but bothhad something special in common to draw industry attention: a dualCEO.

Update, March 1, 2012: Kinecta, NuVision Cancel Merger Plans

The idea of the CEO wearing two hats managing simultaneously twoseparately chartered CUs—with two sets of boards – figures in thenow-delayed $5.1 billion merger of Kinecta FCU of Manhattan Beachand NuVision CU of Huntington Beach, both inCalifornia.

It also plays a part in the planned consolidation of three mid-size Columbus credit unions led by Powerco CU to forma $170 million CU to be rebranded later in 2012.

“I'd say Roger Ballard is one talented guy,” is how DianaDykstra, the president/CEO of the California/Nevada Credit UnionLeague, described the skills of the president/CEO of both Kinectaand NuVision.

Ballard was given the Kinecta job nearly two years ago toengineer one of the nation's largest CU mergers. That consolidationis on a back burner until mid-2013 while Ballard and the Kinectateam devote their energies to clearing up the CU's mortgageportfolio after Kinecta endured a $30.6 million loss in 2011.

And in Ohio, Michael Shafer, president/CEO of Powerco, took overmanagement at year-end of the $60 million Western CU prior to anunusual three-CU merger with the $52 million Members First CU.

The buzz among CU managers and consultants was the prospect ofmore such dual CEO deals in the future with a caveat: these kindsof contracts deserve careful scrutiny.

“I suppose the question is whether this arrangement adds risk ofa diminished CEO focus and/or led to the Kinecta losses,” observedTom Glatt Jr., a credit union consultant in Wilmington, N.C.

But he added, “if the loss was an outcome of a of a definedstrategy, such as working to reduce concentration risk or mitigateinterest rate risk, then you can say that the CEO arrangementitself did not contribute to the loss “

Nonetheless “if that was the strategy you could certainlyquestion decision-making and execution,” said Glatt, noting thatlate Apple founder Steve Jobs once ran Pixar and Apple at the sametime and said in his biography that he found it verydifficult.

“I imagine the same can be said for this situation, which to mesuggests the boards should push a little harder to wrap up themerger sooner than later,” suggested Glatt.

Another consultant, Michael Bell, a Niles, Mich. Attorney, saidthe dual CEO “certainly brings a series of risks to theforefront.”

Good analysis and advance planning “can eliminate a greatmajority of the risks including continuity of leadership,” saidBell.

For his part, Ballard, with 18 years of CEO experience, has saidhe takes dual management in stride despite the complications andthe job stresses. Yet, he told Credit Union Times he couldnot succeed without a “the advantage of seasoned, senior executiveteams at both organizations.”

In fact, said Ballard, during 2011, “we increased the leadershipcapacity at Kinecta with the addition of a chief operating officerand a chief information officer” and so “given the expertise,strength and depth of the senior teams as well as the synergiesbetween the two organizations, it has proved to be a very effectivemanagement structure as we go through the merger process.”