5 tips for a successful succession plan

Description

Abstract: Community banks can’t afford to be without a succession plan. There’s no specific regulatory requirement that banks create a succession plan, but regulators generally view a formal plan as a best practice. For example, the OCC, in its Spring 2014 Semiannual Risk Perspective, listed “planning for management succession and retention of key staff” as a key risk issue facing community banks. This article offers five tips for developing an effective succession plan. Although they focus on the CEO, the suggestions also apply, in general, to forming plans for other key executives and directors.