tag:blogger.com,1999:blog-235433516644980443.post34501419342057708..comments2024-03-27T05:08:10.195-04:00Comments on Jeff For Banks: What Makes an Effective Community Banking Board?Jeff Marsicohttp://www.blogger.com/profile/12153599647481141591noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-235433516644980443.post-80596527853832008312022-05-26T09:43:08.050-04:002022-05-26T09:43:08.050-04:00I came upon this blog while searching for Home Rem...I came upon this blog while searching for Home Remittance on Google. However, as a banker, it's encouraging to see that you're providing important knowledge about the banking industry.Greg Thompsonhttps://www.hbl.com/personal/remittancenoreply@blogger.comtag:blogger.com,1999:blog-235433516644980443.post-63968592277386285762022-05-26T09:41:31.774-04:002022-05-26T09:41:31.774-04:00This comment has been removed by the author.Mark Kinghttps://www.blogger.com/profile/13028847626578586774noreply@blogger.comtag:blogger.com,1999:blog-235433516644980443.post-70409701602757342352019-01-19T11:28:38.152-05:002019-01-19T11:28:38.152-05:00Mike,
Great story. Eerily similar to my trust iss...Mike,<br /><br />Great story. Eerily similar to my trust issues with speakers that wear wrap-around the head microphones.<br /><br />~ JeffJeff Marsicohttps://www.blogger.com/profile/12153599647481141591noreply@blogger.comtag:blogger.com,1999:blog-235433516644980443.post-87165240424143555552019-01-17T12:17:46.466-05:002019-01-17T12:17:46.466-05:00Jeff - I'll share a dysfunctional true story. ...Jeff - I'll share a dysfunctional true story. I sat in a board meeting and watched a vendor do a BOLI presentation. One board member voted against the proposal. His rationale? The vendor hand one hand that was tanned color and one that was not. He surmised the vendor spent too much time on the golf course and he did not trust people who spent more time golfing than working. This is the type of stuff that never sees the light of day, as noted by the first commenter.Anonymoushttps://www.blogger.com/profile/07875534656340044646noreply@blogger.comtag:blogger.com,1999:blog-235433516644980443.post-39995304336360972672019-01-13T09:06:06.749-05:002019-01-13T09:06:06.749-05:00Anonymous,
There are times that I have seen board...Anonymous,<br /><br />There are times that I have seen boards that should have been challenging management be overly deferential.Deference should be earned. Trust but verify. But this isn't common, in my experience.<br /><br />What is more common are boards getting involved in minutia, such as vendor selection, or rank and file compensation. This eats time that should be spent on reviewing exceptions to policy or discussing effectiveness of policy on safety and soundness and how management is performing compared to strategy.<br /><br />Thank you for the comment!<br /><br />~ JeffJeff Marsicohttps://www.blogger.com/profile/12153599647481141591noreply@blogger.comtag:blogger.com,1999:blog-235433516644980443.post-66149635854176638322019-01-12T18:36:57.105-05:002019-01-12T18:36:57.105-05:00Thank you for the thoughts (as I'm always inte...Thank you for the thoughts (as I'm always interested in reading more about the inner workings of banks as a bank investor). You have a valid point (and a decent theory I think) about the board needing to hold management accountable. Though, one really can't measure the effectiveness of a board that well, as most decisions are made behind closed doors and don't see the light of day. <br /><br />As well as the board members themselves usually has some conflicting interests. As it isn't like any person off of the street can become a board member (or even get on the proxy). And if as a board member you are balancing a fair amount of compensation versus questioning the CEO or chairperson, it does seem like a number of times that board members don't speak up or hold management accountable (they go along to get along as it were). I mean, I would definitely be interested in hearing about how they do (and have asked that question once or twice at an annual meeting), but I'm not really sure as an outside, how confidence I can be in their response, even though my understanding is that they have a fiduciary responsibility, there is still some reasonableness or wiggle room in it. Anonymousnoreply@blogger.com