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USAA expands board eligibility

August 28, 2018

Any USAA member insured by any of its property and casualty insurance companies is now eligible to serve on its board of directors under a change to its bylaws that was overwhelmingly approved by its members this weekend.

The San Antonio-based financial services company, which held its annual meeting Saturday, reported 93 percent of the votes were cast in favor of the change, according to USAA spokesman Matthew Hartwig.

“This change more than doubles the size of the eligible pool for board service,” Hartwig said Monday.

USAA doesn’t disclose how many people it insures for “competitive” reasons, Hartwig said. It has 12.4 million members, but he said USAA doesn’t insure all of them.

Lester Lyles, USAA’s chairman, said in a letter to members ahead of the annual meeting that the “proposed change will enable us to find the industry expertise we need to govern a complex financial services company while preserving USAA’s focus on serving the military community.”

Last year, USAA expanded board eligibility to those who have served at least three years as a director of any USAA subsidiary — such as USAA Bank.

Prior to the change, though, board eligibility was limited to any United Services Automobile Association member, his or her spouse, or widow or widower, Hartwig said. United Services Automobile Association is the original insurance company founded in 1922.

The bylaw change now opens eligibility to members of USAA’s six other property and casualty insurance companies: USAA Casualty Insurance Co.; USAA General Indemnity Co.; Garrison Property and Casualty Insurance Co.; USAA County Mutual Insurance Co; USAA Texas Lloyd’s Co. and USAA Ltd.

USAA has 14 board members; all but one has served in the military. The only nonmilitary member of the board is Tracy B. McKibben, who has been a director since 2015 and was re-elected to a three-year term Saturday. She is a spouse of a USAA member and chairs the board’s finance and audit committee. She also is a member of the compensation and workforce committee.

The company’s board unanimously recommended members vote in favor of the bylaw change.

Patrick Danner is a San Antonio-based staff writer covering banking and civil courts. Read him on our free site, mySA.com, and on our subscriber site, ExpressNews.com. | pdanner@express-news.net | Twitter: @AlamoPD

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