Do you want to have one of those awkward board room discussions? If so, bring up the topic of board member term limits. As I type this I can hear my two girls in their high pitch voices saying…awkward! This may be a tough discussion item, but I believe it is one that needs to occur in bank board rooms across the country. Many bank boards are comprised of significant stockholders and community leaders, but often with terms that are reminiscent of US Supreme Court justices.
I had a conversation recently with a client and they expressed a desire to bring some “new blood” with fresh ideas to the board but don’t have room on the board unless current members retire. That statement may be part of the issue. Often, leaving a board is considered “retiring” and only happens due to mandatory age limits or health reasons.Continue reading >