Independent Banker - December 2023 - 20
PORTFOLIO
ď…€FOCUS SUCCESSION PLANNING
Building a better
board-succession
process
As customer requirements evolve, a forward-thinking community
bank board of directors is critical. Two community bankers explain
how they set their boards up for success. By Elizabeth Judd
A
t Lake Ridge Bank's August board
meeting, two directors, now
retired from their day jobs, voluntarily
gave up their seats. Such expectations
had been set years ago: As part of
the annual director self-evaluation
process, active employment is one of
the $3 billion-asset community bank's
main criteria for serving on the board.
" When you're no longer fulfilling
all of the characteristics of an ideal
director, maybe it's a good time to
part ways, " says Jim L. Tubbs, CEO
of the Middleton, Wis., community
bank. " We never want a directorship
to feel like it's a lifelong opportunity-
or a life sentence. We want directors
to truly be engaged and to be in the
right chairs for the right reasons. "
Such amicable partings are not
necessarily the norm, which highlights
the importance of a comprehensive
process for board succession.
Often, the central dilemma of board
succession is figuring out graceful
ways of removing directors who
have become disengaged or who are
otherwise not making meaningful
contributions, according to Peter
Weinstock, a partner at law firm
Hunton Andrews Kurth LLP. in
Richmond, Va.
While he's seen only around a third
of community banks engage in board
assessments-either performed by
directors themselves or by a third
party-Weinstock finds this method
effective for promoting healthy director
turnover. " In my experience, it doesn't
take a questionnaire or a third party
to tell you you've got a problem. The
directors all know it, " he says. A formal
assessment process does not diagnose
problems so much as it gives boards
" a way to confront " what everyone is
painfully aware is happening.
Alan J. Kaplan, CEO of Philadelphiabased
Kaplan Partners, an executive
search and board advisory firm, raises
a related point: Often a board needs
to change up directors for no other
20 // ICBA Independent Banker // December 2023
Image by Tatjana Zlatkovic/Stocksy
Independent Banker - December 2023
Table of Contents for the Digital Edition of Independent Banker - December 2023
Contents
Independent Banker - December 2023 - Intro
Independent Banker - December 2023 - Cover1
Independent Banker - December 2023 - Cover2
Independent Banker - December 2023 - Contents
Independent Banker - December 2023 - 2
Independent Banker - December 2023 - 3
Independent Banker - December 2023 - 4
Independent Banker - December 2023 - 5
Independent Banker - December 2023 - 6
Independent Banker - December 2023 - 7
Independent Banker - December 2023 - 8
Independent Banker - December 2023 - 9
Independent Banker - December 2023 - 10
Independent Banker - December 2023 - 11
Independent Banker - December 2023 - 12
Independent Banker - December 2023 - 13
Independent Banker - December 2023 - 14
Independent Banker - December 2023 - 15
Independent Banker - December 2023 - 16
Independent Banker - December 2023 - 17
Independent Banker - December 2023 - 18
Independent Banker - December 2023 - 19
Independent Banker - December 2023 - 20
Independent Banker - December 2023 - 21
Independent Banker - December 2023 - 22
Independent Banker - December 2023 - 23
Independent Banker - December 2023 - 24
Independent Banker - December 2023 - FIS1
Independent Banker - December 2023 - FIS2
Independent Banker - December 2023 - FIS3
Independent Banker - December 2023 - FIS4
Independent Banker - December 2023 - 25
Independent Banker - December 2023 - 26
Independent Banker - December 2023 - 27
Independent Banker - December 2023 - 28
Independent Banker - December 2023 - 29
Independent Banker - December 2023 - 30
Independent Banker - December 2023 - 31
Independent Banker - December 2023 - 32
Independent Banker - December 2023 - 33
Independent Banker - December 2023 - 34
Independent Banker - December 2023 - 35
Independent Banker - December 2023 - 36
Independent Banker - December 2023 - 37
Independent Banker - December 2023 - 38
Independent Banker - December 2023 - 39
Independent Banker - December 2023 - 40
Independent Banker - December 2023 - 41
Independent Banker - December 2023 - 42
Independent Banker - December 2023 - 43
Independent Banker - December 2023 - 44
Independent Banker - December 2023 - 45
Independent Banker - December 2023 - 46
Independent Banker - December 2023 - 47
Independent Banker - December 2023 - 48
Independent Banker - December 2023 - 49
Independent Banker - December 2023 - 50
Independent Banker - December 2023 - 51
Independent Banker - December 2023 - 52
Independent Banker - December 2023 - 53
Independent Banker - December 2023 - 54
Independent Banker - December 2023 - 55
Independent Banker - December 2023 - 56
Independent Banker - December 2023 - 57
Independent Banker - December 2023 - 58
Independent Banker - December 2023 - 59
Independent Banker - December 2023 - 60
Independent Banker - December 2023 - 61
Independent Banker - December 2023 - 62
Independent Banker - December 2023 - 63
Independent Banker - December 2023 - 64
Independent Banker - December 2023 - 65
Independent Banker - December 2023 - 66
Independent Banker - December 2023 - 67
Independent Banker - December 2023 - 68
Independent Banker - December 2023 - Cover3
Independent Banker - December 2023 - Cover4
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