Does Your Board Have The Leaders It Needs?
Richard Perkey from Russell Reynolds Associates discusses current board hiring strategies in banking with Bank Director.
Richard Perkey, a managing director at executive and board search firm Russell Reynolds Associates, says the economic environment for banks is so difficult, there's a heightened demand for people with a lot of experience in banking and risk management in particular.
"The emphasis is more dealing with today's issues and today's issues relate more to risk," he says. "Most institutions are not at a stage where they are thinking about innovation or growth. Most institutions are trying to deal with a whole new regulatory environment and today's problems caused by yesterday's decisions. It's still hand-to-hand combat out there."
The board evaluation process also includes a selfevaluation for each board member that can help weaker board members reflect on whether it's time for them to go.
Perkey says it helps to have an independent third party come in for the evaluation and take out the element of personal relationships and history on the board and focus on what the bank needs now and in the future.