25 HќќѠіђџȱ юћјђџ ђяџѢюџѦ 2014 only two of these bank boards were demonstrating strong bank oversight, while 14 were at least a year away. What are the chances that thousands of other banks in the country might share the same board oversight issues as the largest banks? Directors at all banks would be well served to conduct a candid and thorough self-assessment. ȱȱȱęȱȱ documented. My own analysis of 435 banks smaller than $50 billion in size shows that more than 50 percent of the independent directors of these banks lack professional backgrounds in banking, accounting, law, investments, or bank regulation. Some banks do not have one independent director with experience ȱ¢ȱȱȱęȱęǯ ȱ ȱȱę¢ǰȱȱȱȱ action directors should take. Let’s return to a decade ago and the bank and CEO introduced at the beginning of this article. When the bank’s CEO and board realized they had a talent issue, they decided to entertain ěȱȱǯȱ ȱȱ ȱȱ sold a few years before the crisis to a regional institution. Being ahead of the curve, this bank was paid a rich premium to book value. Today, after confronting possible talent gaps, succession planning issues, and concerns about bench talent, bank directors need to determine if selling the bank is the best way to mitigate talent risk. Expect to see more bank mergers in 2014-18 because of the need acquirers and sellers have to mitigate talent concerns. Acquiring banks would be wise to carefully assess the depth of talent in potential acquisitions and know if the talent they are acquiring is likely to stay on after the merger. Sellers of talentladen banks should be able to earn a richer valuation. There are hopeful signs that the banking community is beginning to recognize the talent issue. CEOs of a few community banks have resurrected college recruiting programs and instituted general management training. A growing number of banks have made progress in closing director skill gaps by providing training and bringing in directors with the experience to govern banks. In addition, the boards of a small number of leading banks have formed human resource (or ȱǼȱĴǯ The war for talent in banking is here. As in any war, there will be winners and losers. Winners will be the banks whose leaders recognize that concrete steps are needed now to Ĵǰȱǰȱȱȱǯȱ Here are the questions that ǰȱ ǰȱȱ ȱĜǰȱ ȱȱȱĜȱȱȱȱȱ answer today: 1. Should the bank have a board Ĵȱȱȱȱ resources? Řǯȱ ȱȱȱȱȱěȱ performance management system in place? řǯȱ ȱȱȱȱęȱ and is there a clear-cut plan to close the gaps? 4. Does the bank have a succession plan for key management positions? 5. Is there a pipeline of nextgeneration talent being developed? Looking ahead to 2020 and even 2030, is the bank developing the general management skills of future CEOs and other executive Ĝǵȱ 6. Just as the bank employs external ȱȱĴȱȱȱ¢ȱ ȱęȱ¢ȱȱǰȱ has it conducted an external audit of its critical talent management systems and processes? ȱ ȱęȱǰȱȱ market for talent is dynamic and Ȭǯȱ ȱȱ ȱȱ immediately to make sure they have the rigorous systems and disciplined processes in place to win the talent war. 5HSULQWHG ZLWK SHUPLVVLRQ IURP 7KH 50$ -RXUQDO 'HFHPEHU -DQXDU\ ȱ ȱ ǰȱ , ȱȱȱ ȱ ¢ȱ Chamber of Commerce’s Member of the Year award at the Chamber’s annual luncheon on Jan. 9. The award was granted in recognition of the bank’s community involvement, including thousands of dollars donated ¢ȱȱȱęȱ organizations, charities, school programs, civic organizations and chambers; and hundreds of hours of volunteer work by employees. -RH 3LHUFH SUHVLGHQW DQG &(2 RI )DUPHUV 6WDWH %DQN /D*UDQJH DFFHSWV WKH EDQN·V /D*UDQJH &RXQW\ &KDPEHU RI &RPPHUFH 0HPEHU RI WKH <HDU DZDUG IURP %HWK 6KHUPDQ H[HFXWLYH GLUHFWRU RI WKH FKDPEHU HONORS ȱ , executive vice president, chief ȱĜȱ ȱThe ȱ ȱ ȱ ǰȱ , has been appointed to serve on the board of directors. He joined the bank in 2006 and has 32 years of banking experience. FROM THE BOARD ROOM
RkJQdWJsaXNoZXIy MTg3NDExNQ==