Recruiting the Right Directors for Your Board—and Getting Rid of the Wrong Ones

Recruiting the right members for the board is becoming an increasingly crucial task. The workloads of boards have increased, making ineffective members more of a drag on the other directors. Regulators are emphasizing the quality and effectiveness of boards in exams. The board’s performance is an important part of a bank’s CAMELS score, the rating system regulators use to assess the health of a bank. It is challenging today for banks to make and sustain a return on investment that will satisfy shareholders, making the board’s job of overseeing management more important. Assessing their own performance and recruiting new members...