24 HќќѠіђџȱ юћјђџ ђяџѢюџѦȱ2014 Continued from page 23. gaps only after there is a problem. Unfortunately, in the buildup ȱȱęȱǰȱȱ¢ȱ bank examiners missed the weakmanagement issue in their CAMELS ratings. Directors must be able to judge whether their banks have the appropriate processes in place to evaluate talent independent of regulators’ judgment. But talent planning must be about more than performance problems. It should also be about retaining and developing your best talent. Directors should ask whether the bank has talent-development plans to advance the skills of its most promising employees. These discussions should focus on multiple generations of bankers. A well-managed bank should have a coherent plan for building the skills of those who will run the institution now as well as in 2020 and even 2030. Second, on a related note, make sure you have succession plans in place for all key leadership roles. It is more important today than a year or two ago to take succession planning seriously. Why? As bank balance sheets heal and stock prices rebound, you can expect an upward trend in retirement announcements, just as happened in the period from 1993 to 1998. A banking crisis takes a toll on people. Even the best Eveready bankers can only run so hard for so long. But retirement is not a board’s only succession plan issue. As the ¢ȱȱ ȱȱęȱ return, expect the war for talent to translate into a greater demand for a diminishing population of real bankers. You can be sure the best ¡ȱȱęȱȱȱ on your bankers, telling them about jobs down the street and across the nation. It’s not just CEOs who get these calls. Recently, in the Southeast, ȱęȬȱȱȱȱ commercial bankers moved en masse from one community bank to another. Is your bank prepared to lose all its commercial lenders? If you succeed in keeping them, are you prepared to increase their pay in a world of growing demand and shrinking supply? Third, bank executives and directors need to invest time and money in developing employee skills. Banks built to last must commit to continuing education and, where ǰȱęȱȱȱ ¢Ȃȱ ǯȱ Ĵȱ back on employee development is tempting when net interest margins are tight, loan demand is sluggish, and fee income is trending the wrong way. However, the short-term gain often proves penny wise and pound foolish over multiple economic cycles. Fourth, the best bank directors not only examine their bank’s talent, but also look candidly in the mirror and assess overall board skill and experience. In December 2012, American Banker reported on an OCC study of board oversight at the nation’s 19 largest banks. The study revealed that WWW.MORTGAGEHAZARD.COM Place coverage on uninsured commercial and residential properties within seconds. BLANKET MORTGAGE HAZARD Entire portfolio protection while eliminating insurance follow-up may be less expensive than you think. BLANKET MORTGAGE IMPAIRMENT Total portfolio protection that includes servicing errors and omissions while eliminating insurance follow-up for a low annual premium. OUTSOURCED INSURANCE TRACKING Let us handle your insurance mail, phone calls, send letters and place coverage when needed. FLOOD COVERAGE Protect residential, commercial, REO and mobile home properties located in mandatory Contact Paul Baker or Matt Washer at 888-685-8442 pbaker@leeandmason.cPN r mwasher@leeandmason.com www.leeandmason.com Are all your mortgage properties insured? LET US HELP YOU PROTECT THEM. PREFERRED SERVICE PROVIDER Lee & Mason Financial Services is the leading provider of mortgage protection programs nationwide. With access to multiple “A Rated” markets, we provide comprehensive and cost effective solutions to mortgage lenders and services.
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