WHAT ARE YOU DOING ABOUT BOARD SUCCESSION?

The Headache: While management succession is being widely discussed, director and trustee selection isn't getting as much airtime.

Our Question: Will the new CEO walk into an empty boardroom? What is your bank doing about boardroom succession?

Come see what other bankers think, and add your own views

 

http://www.ababj.com/images/stories/12210aspirinblog.jpgBoardroom Succession: What is your bank doing about it?

America's bank boardrooms are graying.
 
While experience is a good thing, and a prerequisite for a good board, the time will come when
 
circumstances dictate that directors and trustees leave the bank.
 
What is your bank doing to ensure a supply of fresh, insightful board members?
 
And how are you making sure they come about with adequate transition time?

 

Let's hear your views and ideas below! (Editorial Note: Contributions to Pass the Aspirin may also appear in our print edition. While we will ask for your e-mail address, this is only as an aid to verifying identity and will not be used for any marketing or promotional purpose. The e-mail address will not be published.) 

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William Grant, chairman and CEO, First United Bank & Trust, Oakland, Md. said:

A number of years ago, First United eliminated its three Advisory Boards. In their place, an Advisory Council was created. Care was used in terming it a “council” and not a “board.” This made it clear that the role was advisory, and it did not bear the legal responsibilities of the Board.
The Council meets six times per year, in a dinner meeting following our Board meetings. This affords our Board members the opportunity of attending and observing. The Council’s agenda is to kept abreast of the bank’s activities, and to solicit their input on a number of market‐related issues. The majority of the Council members are community oriented businesspeople, and able to bring this perspective to the meeting.
This arrangement provides the following advantages to the Bank:
• It serves as a valued “blue sky” advisory group to help the bank establish and execute strategies
• It provides a “farm system” for future directors by affording members the opportunity of learning about the bank, its mission, and its culture. The bank gets to know them. If there is a fit, then that person may eventually become a director. In fact, the last several directors at First United have come to the board by this route. If there is not a fit, then that becomes known before a member is placed on the board, and one side or the other comes to this realization.
• It facilitates an environment where the Council member and various directors come to know each other, making the selection and nomination of future directors an easier chore.
 
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November 30, 2010
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Keith Pollnow, president and CEO, Choice Bank, Oshkosh, Wis. said:

We have a relatively young board. Retirement is not on the mind of our directors. However, we have developed a list of high profile and qualified shareholders that we identified as potential directors and took it a step further. I conducted an introductory conversation with the candidates that included a discussion pertaining to increased director liability and the rigors of directorship.
 
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November 30, 2010
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