Only 20% of community banks feel fully prepared for the succession of their CEO and other executives to the next generation, according to a recent article in Independent Banker magazine.
Importance: The article says identifying and developing the next round of leaders is critical for community banks because it:
Ensures continuity of leadership and bank strategy.
Prevents disruption from unexpected leadership changes.
Builds confidence among customers, investors, and regulators.
Another Risk: Shareholder succession is another key issue, said ICBA Chairman Lucas White. “The more closely held or lightly traded your bank is, the bigger the shareholder succession issue may be,” he said.
Solutions: ICBA Education courses such as “Succession Planning for Your Community Bank’s Future (and Survival)” and “Strategies for Succession Planning and Talent Management” can help community banks plan ahead.
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