SACRAMENTO, Calif. (3/9/11)--The California Department of Financial Institutions (DFI) re-emphasized the importance of corporate governance guidance--the relationship of the board of directors and management--for credit unions in its February monthly bulletin. “It is the responsibility of the board to oversee the general operations of the credit union, to set policy with regard to the major aspects of the credit union’s business, and to act in good faith and exercise due care in making proper business decisions that are first and foremost in the best interests of the credit union and its members,” the DFI said. Key elements of board responsibilities are oversight of management performance and setting management compensation levels. The DFI said it expects boards to establish levels of compensation that are appropriate for the size, complexity and attributable performance of a credit union, and to document those factors. The agency said it will be looking more closely at these board processes. Several state regulators are following the lead of the National Credit Union Administration in emphasizing board governance and board financial literacy in an increasingly complex financial environment.