Study Finds Banks Are Largely Unprepared for CEO Succession

It’s 2017 and 48% of bank directors and executives say their bank hasn’t designated a successor to replace their CEO when he or she transitions out of the position. This statistic was revealed in Bank Director’s 2017 Compensation Survey. Why are so many banks falling behind on their succession planning? Although the majority of respondents credited their response to the fact that they’re weren’t expecting their current CEO to retire any time soon, life can be unexpected and you always need to be prepared.

Maintaining a succession plan ensures a smooth transition when your current CEO does plan to retire. It’s also meant to serve as a reason to evaluate your bank’s future and the type of leaders you need to carry out your board’s vision. If senior leaders have anxiety about bringing up what some may consider a sensitive subject, you need to establish an environment where the c-suite feels comfortable discussing succession or retirement.