Banks Grapple With Succession Planning
Barack Ferrazzano Compensation & Employment Group Chair Donald L. Norman was quoted in the Bankdirector.com article entitled, "Banks Grapple with Succession Planning," published on November 18, 2015.
The article discusses the need for banks to identify individuals who could take over for its senior level executives in case an event occurs and a replacement is needed. "Regulators have the greatest interest in a bank's emergency succession plan," Don said, "This is about keeping the doors open." To address this, banks should have both emergency and long-term succession plans in place which identify those critical senior positions, including lists of potential candidates who could step in for each position in an emergency situation or for the long-term. The candidates in an emergency succession plan may differ from those in a long-term plan, and likewise, the skills and abilities needed for a long-term plan may not be the same as in an emergency. It's important to develop succession plans based on the institution's particular needs. The article estimates in the future, though, banks may find younger generations, such as millennials, are likely to change the process, as the needs of younger generations, especially related to potential career paths and furthering career goals, have changed from those of previous generations when it comes to succession planning.
Click here to read the entire article on Bankdirector.com.