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Management Studies, Board Assessments and Compensation Studies

The effectiveness of a bank’s board and management is increasingly important to being able to establish and maintain both a safe and sound operation but also a competitively significant institution. Compensation practices are increasingly a major focus of regulators and have found to be a cause of bank failures in recent years.  Bank Strategies LLC is very experienced in management and board evaluations as well as assessing compensation approaches.


American Banker--February 8, 2011

Reassessing Management Assessments

 
"Our work with financial institutions reflects a broad divergence of practice in how boards evaluate management. Most often, the review is limited principally to the chief executive and arises in the context of a compensation assessment of whether annual performance targets were achieved. Today's management evaluations too often do not sufficiently assess whether:
  • There are clear lines of authority among the management ranks.
  • Policies, job descriptions and training provide effective guidance to staff.
  • Key risk management activities are properly governed.
  • Sound human resources practices are followed.
  • Management and board reporting conveys clearly the information necessary for effective oversight.

"Similarly, the persistent focus on annual financial results often crowds out careful consideration of whether managers possess not only the technical skills necessary to perform their responsibilities effectively, but the executive competencies most often associated with success: leadership, driving results (including risk management), talent development, strategic thinking, and relationship building."


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Bank Strategies, LLC produces a periodic email covering a variety of topics including those shown on this web site in the "Our Thoughts" tab plus others that we do not add to this web site.  If you would like to be added to our email list, please email Jim Swanson at Jim@bankstrategiesllc.com with the term "Subscribe me" as the subject line of the email.  Thank you.

 

Contact Information

Phone: 303-903-9369

Mail: 75 S. Joyce Street, Golden, CO 80401

EMail: Jim@bankstrategiesllc.com