Onboarding a new director is a critically important process for the board of directors, and yet it is a process that has not been standardized at most banks in part because it happens so infrequently. Our research tells us that the median length of board service at banks below $50 billion in assets is 12 years, which suggests that many bank only refresh their boards every few years. For many bank boards, onboarding is something they do sporadically.
And yet the orientation of a new director is much too important to be handled in a casual manner. A structured program that introduces a new director to the bank, to the industry and to the principles of corporate governance if board service is a new experience for them, will shorten their learning curve and help them become a productive member of the board sooner.
In this Resource Guide, we offer an onboarding blueprint for new directors that breaks the orientation process down into five separate categories: the bank’s operations, markets and management team; financial metrics specific to banking that every director needs to understand; an overview of the banking industry; regulation; and integrating a new director into the business and culture of the board. Each category is critically important in its own right, and a well-designed onboarding program should hit on all of them.
We also provide a very insightful interview with David L. Porteous, the lead director at Huntington Bancshares, a $175 billion regional bank in Columbus, Ohio. At Bank Director, we believe that directors learn best from each other, and Porteous provides valuable insight into how a bank with strong corporate governance practices handles onboarding.
Lastly, the Resource Guide provides an onboarding checklist that outlines in greater detail a structured orientation program for new directors. We hope you find this Resource Guide useful as you refresh your board of directors.
If you would like access to the Resource Guide, login or contact [email protected] at 615-777-8461.