Decline of the Imperial Ceo
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THE C-SUITE ISSUE | FEBRUARY 2016 GUIDED BY ONE PRINCIPLE: STRONG BOARDS BUILD STRONG BANKS DECLINE OF THE THE IMPERIAL CEO C-SUITE ISSUE DO YOU NEED HR IN THE TEN CRUCIAL A CHIEF EXECUTIVE SUITE RESPONSIBILITIES OF TECHNOLOGY A MODERN CEO OFFICER? EXCLUSIVE SPONSORORSHIP OF THE C-SUITE ISSUE IS BROUGHT TO YOU BY: Diligent is the leading provider of secure corporate governance and collaboration solutions for boards and executives. Over 3,700 clients in more than 60 countries rely on Diligent to provide secure, intuitive access to their most time-sensitive and confidential information, ultimately helping them make better decisions. The Diligent Boards solution speeds and simplifies how board materials are produced, delivered and collaborated on. www.diligent.com |BD| THE C-SUITE ISSUE HELP GUIDE HOW TO USE THE BANK DIRECTOR DIGITAL APP Look for these icons throughout the issue to indicate interactivity. Hotspots Play Video Directional Way Finding Internet Access Tap these icons to Look for this icon Swipe Look for this This icon access interactive to indicate a video. Various icons arrow icon to indicates Internet elements inside Tap to view the instruct you to help you navigate access is required articles. video inside the use a directional through the issue’s for interactive app. swipe to access articles. elements. additional information. How to use the in-app toolbar. Menu Bar Social Sharing Tap the screen to quickly access the When indicated, share an article by tapping a sharing library of archived issues, back button button to access the toolbar. The sharing icon located in and table of contents. the top right gives you various social media platforms to share the article. BANKDIRECTOR.COM In-Print. In-Person. Online. GUIDED BY ONE PRINCIPLE: STRONG BOARDS BUILD STRONG BANKS DIGITAL MAGAZINE THE C-SUITE ISSUE CONTENTS THE DECLINE OF THE IMPERIAL CEO CEOs are seeing their role change in the age of the empowered board. Do You Have an Empowered Board? LETTER FROM THE EDITOR Stay Connected Do you have an imperial CEO? BRIEFLY NOTED Like us on Facebook A BOARDROOM CONVERSATION Join the private Bank Director Bank Director interviews Wintrust Financial Corp.’s LinkedIn Group chairman about succession planning and why some banks Follow are in trouble. @BankDirector on Twitter INTERACTIVE POLL Watch educational videos on Bank Director’s YouTube Channel BANKDIRECTOR.COM |BD| THE C-SUITE ISSUE FROM THE EDITOR THE CEO IS NOT THE ONLY ONE WHO MATTERS e in the business press tend to contribute to the general idea that the CEO is the only person who Wmatters in a company. We clamor for interviews with the CEO, not the chief administrative officer or the chief financial officer. We put the CEO on the cover of newspapers and magazines. When things go wrong, we blame the CEO. But anyone who actually works inside a company knows the story is different. There are multiple powerful people inside a company Naomi Snyder making decisions, creating the culture of the place, and producing is editor for Bank Director. profits or losing money. The CEO may have varying degrees of success in imposing his or her values and agenda on the rest of the team. And so in recognition of the importance of the other executive team players, we publish an issue devoted to the entire C-suite. In this issue, you’ll find that the role of the CEO has changed, and with that, the roles of the other C-suite officers. We have articles on the changing role of the chief technology officer at a bank, and on the companies that are promoting chief human resources officers to the C-suite. One of those executive suite officers is U.S. Bank’s Jennie Carlson, who speaks in a video about her efforts to change the lack of diversity in her bank’s senior management team. SWIPE UP We also explore the changing role of the bank CEO. In this issue, hedge fund founder Tom Brown writes about the 10 crucial responsibilities of a modern CEO, recognizing the fact that running a bank has become a much more difficult prospect than in previous years, Tapand requiresbelow to tella different us what set you of think skills. of the digital magazine. Our cover story looks Naomi at Snyderthe decline | [email protected] of the imperial CEO. In an age where increasingly empowered boards are exercising their muscles, CEOs, especially at publicly traded companies, are forced to BANKDIRECTOR.COM collaborate and share power. After the financial crisis wiped out many imperial bank CEOs, boards are recognizing the importance of proper oversight and chief executives who can handle constructive criticism. That’s not to say the CEO-who-knows-it-all no longer exists. And it’s not to say the CEO shouldn’t have confidence in his or her plan and abilities. It’s just that increasingly, and especially for publicly traded banks, the CEO can’t discount the opinions of very smart people or get offended by questions about the overall direction of the company, its risk management, or its strategy. The CEO is not the only person making decisions. We hope these articles give you ideas as you strengthen your own C-suite team. e in the business press tend to contribute to the general idea that the CEO is the only person who Wmatters in a company. We clamor for interviews with the CEO, not the chief administrative officer or the chief financial officer. We put the CEO on the cover of newspapers and magazines. When things go wrong, we blame the CEO. But anyone who actually works inside a company knows the story is different. There are multiple powerful people inside a company making decisions, creating the culture of the place, and producing profits or losing money. The CEO may have varying degrees of success in imposing his or her values and agenda on the rest of the team. And so in recognition of the importance of the other executive team players, we publish an issue devoted to the entire C-suite. In this issue, you’ll find that the role of the CEO has changed, and with that, the roles of the other C-suite officers. We have articles on the changing role of the chief technology officer at a bank, and on |BD| THEthe companiesC-SUITE ISSUE that are promoting chief human resources officers to FROM THE EDITOR the C-suite. One of those executive suite officers is U.S. Bank’s Jennie Carlson, who speaks in a video about her efforts to change the lack ofTHE diversity CEO in ISher NOTbank’s THEsenior ONLYmanagement ONE team. WHO MATTERS We also explore the changing role of the bank CEO. In this issue, hedge fund founder Tom Brown writes about the 10 crucial responsibilities of a modern CEO, recognizing the fact that running a bank has become a much more difficult prospect than in previous years, and requires a different set of skills. Our cover story looks at the decline of the imperial CEO. In an age where increasingly empowered boards are exercising their muscles, CEOs, especially at publicly traded companies, are forced to collaborate and share power. After the financial crisis wiped out many Naomi Snyder is editor for imperial bank CEOs, boards are recognizing the importance of proper Bank Director. oversight and chief executives who can handle constructive criticism. That’s not to say the CEO-who-knows-it-all no longer exists. And it’s not to say the CEO shouldn’t have confidence in his or her plan and abilities. It’s just that increasingly, and especially for publicly traded banks, the CEO can’t discount the opinions of very smart people or get offended by questions about the overall direction of the company, its risk management, or its strategy. The CEO is not the only person making decisions. We hope these articles give you ideas as you strengthen your own C-suite team. SWIPE UP Tap below to tell us what you think of the digital magazine. Naomi Snyder | [email protected] BANKDIRECTOR.COM 100% PEAC E OF MIND 30% OR MORE SAV INGS 100% CARDHO LDER SATISFACTION |BD| THE C-SUITE ISSUE BRIEFLY NOTED have heard plenty of bank directors over the years complain that their CEO is making too much money. So how much is too Naomi Snyder much? That may need a philosophical answer, or it might need a is editor for I Bank Director. statistical one. The following is a list of links to more information on what bank CEOs are making, as well as trends and statistics for other C-suite officers and the board. Tap the numbered icons to cycle through topics 1234 CEO PAY The average compensation for a bank CEO/ president was $301,557 in 2015, according to accounting firm Crowe Horwath LLP, which surveyed 296 financial institutions in the fall of 2015, mostly below $1 billion in assets. Aside from the CEO, the next highest paid executive is the chief financial officer. In fact, CFOs have seen their salary rise an average of 31 percent in the last five years, to $194,542 in total compensation, according to the firm. BANKDIRECTOR.COM Mergers & Acquisitions, Are You Prepared? Whether through organic growth or acquisition, Compensation Advisors has the solutions and know how to ensure firms understand and offer best compensation practices to retain and cultivate new talent. 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