Findings reveal bank leaders' views on succession planning,
executive talent challenges and rising compensation costs.
NASHVILLE, Tenn., June 18,
2024 /PRNewswire/ -- Bank Director, the leading
information resource for directors and officers of financial
institutions nationwide, released the results from its 2024
Compensation & Talent Survey, sponsored by Chartwell
Partners. Survey findings reveal that many bank boards
lack proactiveness in CEO succession, which could have costly
consequences.
The board's role in identifying potential successors and
implementing a plan of action is pivotal in succession planning for
the CEO. However, according to the survey, many respondents stated
they have less confidence in their long-term succession plans for
their CEO, with only 18% having identified a CEO succession
candidate as well as a timeline and plan of action. With almost
half saying they expect their CEO to depart or retire within the
next five years, many boards may find themselves in a tough
position over time.
"Top performing boards recognize their responsibility to own the
CEO succession plan and not fully delegate to the current CEO,"
says J. Scott Petty, managing
partner at Chartwell. "The lack of a thorough evaluation process
can lead to a less-than-qualified internal choice, creating
unnecessary leadership risk."
This lack of clarity and strategy regarding who will be leading
the bank in the longer term continues to be a growing concern among
survey respondents, along with rising compensation costs and
executive talent challenges.
"Selecting the bank's next CEO is a vital board responsibility,"
says Emily McCormick, Bank
Director's vice president of editorial & research. "It's a
decision that can help ensure the long-term health and continued
independence of an institution, and the achievement of its
strategic goals."
A large majority (84%) of survey respondents say they believe
the talent level of their executive team is strong enough to
achieve their bank's financial and strategic goals over the next
five years, even though many of those ostensibly expect their CEO
to leave or retire in that time frame.
To view more key findings from the 2024 Compensation
& Talent Survey, click here or visit
BankDirector.com.
The survey includes the views of 289 independent
directors, CEOs, HROs and other senior executives of U.S. banks
below $100 billion in assets.
Compensation data for directors, non-executive chairs and CEOs was
also collected from the proxy statements of 102 publicly traded
banks. Full survey results are now available online at
BankDirector.com.
About Bank Director
Bank Director reaches the leaders
of the institutions that comprise America's banking industry. Since
1991, Bank Director has provided board-level research, peer
insights and in-depth executive and board services. Built for
banks, Bank Director extends into and beyond the boardroom by
providing timely and relevant information through Bank
Director magazine, board training services and the financial
industry's premier event, Acquire or Be Acquired. For more
information, please visit www.BankDirector.com.
About Chartwell Partners
Chartwell Partners is a
national retained Executive Search and Leadership Advisory firm
known for helping clients professionally manage a board director or
senior leadership decision process in a high-touch professional
manner. The Financial Services Practice, led by Scott Petty, conducts board director, CEO and
senior management assignments, and board and succession advisory
engagements for financial institutions across the U.S.
www.chartwellpartners.com
Source:
For more information, please contact Bank Director's Director of
Marketing, Deahna Welcher, at
dwelcher@bankdirector.com.
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SOURCE Bank Director