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BANK DIRECTORS ASSOCIATION OF A Bi-annual Publication of The Bank Directors Association of Nigeria

Vol 1 No 1 February 2012

CCaasshhlliittee Banking Reform EEccoonnoommyy

Cashlite Economy

Women Agents of change

Was Steve Jobs a success as CEO and Chairman? C o n t e n t s P a g e s

New President's Remarks 4

New President's Speech 5

BDAN in brief 6

Banking Focus 10

Photo Splash 12

The Director's Health 13

Quotable Quotes 14

Current Matters 15

Updates for members 16

C o u n c i l M e m b e r s

The Olor'ogun (Dr.) Sonny F. Kuku - President

Mrs. Foluke K. Abdulrazaq - Vice-President

Mr. Yemi Idowu - Secretary

Mr Ikechi O. Kalu - Financial Secretary

Mr. M.G. Tarfa - Treasurer

Mr. Sam Cookey Jr. - Member

Chief Ope Bademosi - Member

Mr. Chima Akalezi - Member

Mr. Okezie C. Amachukwu - Member

Dr. (Mrs.) Lucy Newman - Member

O.M. Sulaimon - Member

Dr. (Mrs.) Nike Akande - Member

Mr. Nnamdi Oji - Member

The Bank Director 2 Current President’s Remarks Current President’s Remarks

The Olor'ogun (Dr.) Sonny. F. Kuku OFR President, Bank Directors Association of Nigeria (BDAN)

I am pleased to be writing you in this maiden may have indirect impact on us. Our experiences edition of our Newsletter. The Newsletter comes and expertise is such that we can give value to our as a result of our continuous concerted effort to nation's building process. BDAN gives voice to position BDAN as an influential body in the Bank directors as a body. financial services industry. BDAN will continuously strive to upgrade and The objectives of the Association are hinged on update the knowledge of members. Fora are the premise that we can collectively protect the periodically organized to discuss salient issues interests of the banking industry and also the relating to the banking industry. The event brings directors of banks. This necessitates our proactive together decision makers in the industry, including involvement in the processes of formulation of the regulators. The Central Bank of Nigeria and the policies and regulations for the industry. Nigeria Deposit Insurance Company have been notably involved in these fora. In this light, the Governing Council has approved the report of a survey on the remuneration of BDAN also affords the directors the unique directors. BDAN recognizes that a proper opportunity to attend bespoke trainings that remuneration structure of directors is necessary address the needs of directors of banks in Nigeria. for their independence as they perform their As mentioned earlier, the ethical burden and the regulatory and oversight functions within their past financial system meltdown makes it organizations. The ethical burden on directors imperative for us to be well grounded in the cannot be over-emphasized and it is important rudiments of corporate governance. that impediments are removed to allow effective functioning. BDAN will continue to serve the interests of the directors. We hope that we will continue to have As directors and major stakeholders in the the support of all stakeholders in the industry as we industry, it is necessary to have a platform on participate in different aspects of building healthy which regulators can interface with us as a and reliable banks. sounding board for regulations that pertain to and affect the sector directly, and also those that Thank you and God bless.

The Bank Director 3 B D A N i n b r i e f Vision/Mission

V i s i o n

“To be the “go to” organisation for matters concerning Non-Executive Directors issues of commercial banks by regulators and related organisations”

M i s s i o n To play an active role in the enthronement of good corporate governance in Nigerian banks and collaborate with the financial regulatory agencies to ensure proper management of these banks.

BDAN in brief BANK DIRECTORS ASSOCIATION OF NIGERIA

Constant update of knowledge and the competence of Bank Directors, aimed at promoting honourable practice within the Banking Industry in Nigeria was identified as a major need. The Financial Institutions Training Centre (FITC), using its vantage position in the industry, supported by both the Central Bank of Nigeria (CBN) and Nigeria Deposit Insurance Corporation (NDIC), was instrumental to the setting up of the Bank Directors Association of Nigeria.

The Bank Directors Association of Nigeria (BDAN) was inaugurated at the 13th Annual Bank Directors Seminar held in Abuja in June 1997. A fifteen man Governing Council headed by Major General G.O. Ejiga Rtd was constituted.

The Association's objectives are as follows:

· To act as organ of communication for and to represent members and their various banks in all or any of their relationship with government ministries, departments, agents, local/public authorities and trade Association, to afford facilities for conferring with and making known the views of the members of the Association in regard to actual or proposed legislation or any other matter directly or indirectly affecting their interest.

· To formulate and monitor the ethics of Bank Directors in the banking industry, from time to time, aimed toward enhancing efficiency and accountability.

The Bank Director 4 B D A N i n b r i e f

· To enlighten and educate its members in regard to their legal, moral and general rights and responsibilities in respect to their banks, organizations and society as a whole.

· To provide an active forum and effective voice for its members in public affairs.

· To improve the competence and knowledge of its members and promote honourable practice by members within the Banking Industry.

· To take a continuing and effective interest in legislation in order to ensure as far as possible that basic commercial freedoms and rights are preserved, to ensure conductive climate towards strong economic growth in Nigeria.

· To advance the competence and knowledge of its members by organizing, arranging and sponsoring meetings, conferences, seminars, lectures and courses of study aimed towards the development of the business of banking in Nigeria.

Since inception, BDAN has produced seven Governing Councils peopled by directors of high integrity, innovative minds and disciplined work ethics. Transitions of leadership between successive Governing Councils has been smooth and democratic and has always ensured that capable and committed leaders are elected. This has helped to fuel the growth of the Association. These various leaderships have been able to unite the major banks in Nigeria with nearly all banks being active supporters of the Association.

BDAN has organized several fora to acquaint members with issues of interest to the industry as part of continuing education of members. Such gathering has also been a conduit for expression of members' views on salient nation issues pertaining to the Banking Industry. There is regular interaction between the Association and the regulators and other stakeholders in the industry.

The activities of the Association are being financed by annual subscriptions paid by the banks to the Association.

BANK DIRECTORS ASSOCIATION OF NIGERIA

The Bank Director 5 B a n k i n g f o c u s Banking on Reforms: Perspectives on the Future Landscape of Banking in Nigeria. - By Dr. Kingsley Chiedu Moghalu

r. Moghalu began by remarking on the requirements commensurate to the Ddramatic developments in the global and depth and scope of their activities. domestic financial systems in the last three · A new banking culture taking root in the years which led to phenomenal changes in the industry with emphasis on sound Nigerian banking industry. The lessons learnt from corporate governance, effective risk the recent global financial crisis as well as the management, transparency and weaknesses, issues and challenges that preceded disclosure, as well as sound business the Nigerian banking sector crisis providing the ethics. basis for the far-reaching reforms initiated by the CBN in 2009. These reform measures had the · The improvements being recorded in objective of strengthening the stability and corporate governance and risk resilience of the financial system and ensuring that management, as well as the impact of the banking system contributes to the Asset Management Corporation of development of the real economy. Nigeria (AMCON), manifesting in the significant reduction in the ratio of non- performing loans (NPLs) to total credit in Adding that while the reforms may not yet have the banking sector. been fully bedded down, they have nevertheless This is an extract of the · Also a considerable improvement in the keynote address given by Dr. already changed the shape, structure and macroeconomic environment with a Kingsley Chiedu Moghalu at character of the banking system as well as broadly stable naira exchange rate the October 2011 Forum of redefined both the competitive landscape in sustained for over 18 months, and BDAN in . Dr Moghalu which banks operate and the dynamics of risk and is Deputy Governor of the inflation rate moderating to a single digit Central Bank of Nigeria in return that shape their businesses. He identified of 9.3 per cent. charge of the Financial some positive outcomes of the reform as: System Stability (FS S) · The recent take-over of the erstwhile Directorate. He is responsible · A new banking model that replaced the Afribank, BankPHB and Spring Bank Plc. for the implementation of far- erstwhile Universal Banking regime by AMCON following the intervention of reaching reforms to enhance which now governs the licensing and the quality and stability of the Nigeria Deposit Insurance banks and other financial operation of banks. Under the model, Corporation (NDIC) and the conclusion of institutions. He is also a banks are required to operate within the mergers and acquisitions involving member of the President of defined functional boundaries as the five remaining intervened banks the Federal Republic of commercial, merchant or specialized N i g e r i a ' s E c o n o m i c which has restored significant value to Management Team (EMT). banks with different levels of capital

The Bank Director 6 B a n k i n g f o c u s Banking on Reform

the affected banks and stability to the banking crisis that has been witnessed, the future banking system. of banking cannot be left for the banks alone to decide. It is a task that requires the individual and The reform, which has been described as a collective contribution of stakeholders, with each success by pundits, is as unique in its playing its role effectively. innovativeness as it is in its efficient execution. This was demonstrated in a number of unique He referred to the umbrella body of non-executive actions and outcomes which revealed that: directors of banks in Nigeria, BDAN, as having an · In line with the resolve and commitment important role to play as a key stakeholder through of the CBN, no bank failed or collapsed the continuous improvement of the knowledge and competence of Bank Directors, for the purpose of and no depositor in any Nigerian bank promoting sound corporate governance and lost any funds on account of the banking ethical practices within the Nigerian banking crisis. industry in line with its mandate. Bank directors, being key decision makers in the industry, need to be abreast of how these changes will shape the · No funds from the government treasury future of banking in Nigeria, Dr. Moghalu's keynote was utilized to bail out banks, making address dwelt on seven key issues which he believed Nigeria's the only banking system crisis has implications for the future of the banking sector that was resolved without recourse to tax in Nigeria. They include payers' funds. The New Supervisory and Regulatory Paradigm in Nigeria The unique features of AMCON played a The New Banking Model and its Implication stabilizing role. Unlike “bad banks” in other Global Trends and the Future of Regulation jurisdictions, AMCON is a comprehensive banking Banks’ Contribution to the Real Economy sector stabilization vehicle · c o m b i n i n g t h e The Importance of Trust mandate to buy non-performing loans, Financial Inclusion recapitalize distressed banks and become a In conclusion, he stated that the resolution of the (temporary) shareholder, and restructure debt. banking sector crisis in Nigeria is not a guarantee against another crisis in future. It is true that, with the average capital adequacy of the 20 commercial While noting the significant success achieved so banks now at 17.12%, Nigerian banks are now the far, Dr. Moghalu emphasized that it is important to most capitalized in Africa. Yet, whilst it is obvious reflect on recent emerging developments that the nature of banking has changed as a direct consequence of the reforms, and no doubt useful particularly the US debt crisis and the consequent lessons have been learnt from the experiences and sovereign rating down-grade by Standard & Poor's events of the last four years, the responsibility falls (S & P) as well as the economic crisis in the on all stakeholders working in collaboration to Eurozone countries. What do these developments prevent the next crisis and create a more durable framework for financial stability. In this regard, Dr. portend for global financial stability and by Moghalu expressed hope that the CBN will over the extension the Nigerian financial system? In a next 12 months pursue the following strategic scathing comment on the developments in the US priorities as part of a longer term strategy to and Europe, Christine Lagarde, Managing Director respond to future cyclical threats to the financial system: of the International Monetary Fund (IMF) recently Develop and establish a framework for declared that “there are risks emanating from the the resolution of banking crisis in future, US and Europe”. Are we in the throes of another with strong scenario planning. gathering storm that could crystallize into yet Develop and implement a strong macro- another global financial crisis? What is the fire next prudential framework that anticipates time? How resilient are Nigerian banks to a n d a d d r e s s e s t h e s e v e r a l withstand another externally induced shock? How macroeconomic imbalances, shocks and systemic exposures to which the banking prepared are the various stakeholders? and wider financial system in Nigeria is vulnerable, including global economic Indeed, considering the huge consequences of a dynamics.

The Bank Director 7 The Olor’ogun (Dr.) Sonny F. Kuku, current President and former Engr. Ashim Oyekan at the 14th AGM of BDAN recently

The Bank Director 8 T h e D i r e c t o r ' s H e a l t h The Healing Power of Tea

ea, otherwise known as Camellia Sinensis, no mild and delicate taste, a major reason it was called Tdoubt, is one of the commonest beverages in the Emperor's Drink in the nineteenth century. every body's menu today. While most people look at it as a source of refreshment (i.e. something Green Tea to sip while reading the newspapers in the Because it is the beverage of choice in Asia, green morning), it is somewhat idolized in the Asian tea is the most popular type of tea. Sometimes, parts of the world where major State receptions they are scented with flowers or mixed with fruits are incomplete without it. to change their scents and flavours. It also contains healthy antioxidants and helps to regulate Origin cholesterol levels by keeping them within normal The origin of tea as a beverage seems unclear, but history has it that it dates back to the year 2737 BC, range and to maintain good skin and healthy teeth, when a camellia blossom drifted into a cup of and can be used as part of your diet to maintain a boiled drinking water belonging to Emperor Shen healthy blood sugar levels. Nung and instead of having it removed from the boiling water, he asked that it be retained. On Oolong Tea tasting it, he discovered that it gave off a rich, This is full-bodied specie with a rich flavour and alluring aroma that he commanded that this leaf sweet aroma. It is semi-fermented. Oolong teas can be made not only an important part of his daily be a healthy part of your weight loss plan, little beverage, but that its bushes be planted in the wonder why it is most commonly served in Chinese gardens of his palace. Thus the custom and origin restaurants. of brewing fresh leaves in hot water (tea) began. Black Tea Types Black tea is fully fermented and helps to maintain All teas are produced from a plant called Camellia cholesterol at levels that are already within the Sinensis. Different varieties, however, exist which normal range. It also helps in maintaining can be identified by such parameters like the cardiovascular function and a healthy circulatory region where it was grown, the time of year when system. Black tea is the most popular type of tea. This is an article submitted by picked, the processing methods, taste, health Mrs. Foluke K. Abdul-Razaq, a Herbal Tea Director of United Bank for benefits and level of caffeine. These include: Also referred to as tisane because it doesn't contain Africa where she serves as the any leaves from the Camellia plant family, herbal Chairperson of Board Credit White Tea tea contains herbal infusions (made from pure Committee, Member of Board Audit Committee and This is the purest and least processed of all teas. It herbs, flowers, and fruits) which make them Member of Nomination & comes as a loose leaf which, when brewed, shows caffeine-free and rich in vitamin C. Governance Committee. She a light colour and flavour. It contains healthy is also the vice – president of antioxidants and is best for skin and complexion. Rooibos or Red Tea Bank Directors Association of Rooibos tea, or Red tea, is made from a South Nigeria. With very little caffeine, white tea is prized for its

The Bank Director 13 T h e D i r e c t o r ' s H e a l t h The Healing Power of Tea

African red bush. It is a healthy source of vitamins ? Lowering cholesterol and minerals and contains active antioxidants. ? Weight loss by burning calories Naturally caffeine-free, the red tea helps to ? Reduction of high blood pressure promote digestion, support immunity and ? Prevention of arthritis promote healthy skin, teeth and bones. ? Boosting of the immune system ? Lowering of blood sugar ? Prevention of cavities and tooth decay Mate Tea ? Slowing down the aging process This is the coffee lover's favorite tea. Made from ? Reduction in the risk of heart disease the leaves and twigs of the yerba mate plant, it ? Reduction in the risk of stroke gives the same energy as coffee without the jitters. They increase appetite and contain 21 vitamins Conclusion and minerals. Make a point of taking time out to enjoy, taste and appreciate tea every now and then. To do this, sit Blooming Tea down in a pleasant environment away from your Also called artisan or flowering teas, these teas desk or computer avoiding excess noise and actually 'bloom' as they steep. They are hand-tied stimulation. This invites warmth, calm and by tea artists and often include some type of flavor nourishment to your senses and body. Also, when or scent along with the beautiful design. business and work seems so stressful, do yourself the favour of inviting a friend for a cup of tea in a quiet and serene environment and enjoy a boost Importance Tea is a good beverage. Generally it carries anti- from the healing qualities of tea and friendship cancer properties of polyphenols which helps the preferably in a new café and new location where body to fight cancer. It also prevents blood from you meet different people. This will shake off any clotting and helps to decrease cholesterol levels overwhelm and put things back into perspective and risk of heart disease. Research has also shown again. that having 2 cups of tea every day can reduce the risk of developing ovarian cancer by 50%. Source: 1.www.foodeditorials.com Other benefits include: 2. www.ealingphilosophy.com The Business Case for Health and Wellbeing in 2012 ach year the World Health Organization turmoil in Europe has spread to developing and E(WHO) celebrates World Health Day on 7 other high-income countries, which until earlier April to mark the anniversary of the had been unaffected. This has pushed up founding of WHO in 1948. A topic is chosen that borrowing costs in many parts of the world, highlights an area of priority for the health of the pushed down stock markets and world trade has world. The theme of World Health Day in 2012 is slowed sharply. The key to riding this storm may be "Good health adds life to years" . Quality along in the quality of leadership available to individual with quantity of life seems to be the message for companies, institutions and national governments. this year. The focus will be on how good health throughout life can help us lead full and For leadership at management level, health goes productive lives and be a resource for our families well beyond turning up at work. and communities. It provides an opportunity for Executive health is also about the quality of individuals and corporate bodies to initiate thought that informs decisions and the accuracy of Dr Bolaji Obadeyi MBChB, MPH, collective action to protect people's health and judgment in a dynamic and ever changing business is a Public Health practitioner well being. environment. Psychologists have coined the with more than 25 years post- interesting phrase 'presenteeism' to capture the qualification experience in various aspects of preventive What is the imperative for addressing 'quality apparently healthy but sub-productive segment of medicine including reform of issues' of health in the workplace? Today's the workforce. Absenteeism is being sick and health policy relating to the workplace demands more from employees and staying away from work. What is Presenteeism? organization and financing of key decision makers than it has ever done before, Presenteeism is being sick but still coming to work. healthcare services. Her last particularly in the financial services sector. The It is defined as loss of productivity resulting from assignment provided technical world economy is on the brink of another workers who are present but affected by health program support to the Nigerian downturn. Global economic growth started to problems and/or personal issues . Even though Academy of Science under the decelerate in 2011 and this economic slowdown is physically present at work, they are unable to fully African Science Academies Development Initiative (ASADI). expected to continue into 2012 and 2013. The perform their duties and are more likely to make Dr Obadeyi has been a regular United Nations baseline forecast for the growth of mistakes in their judgment. Researchers believe facilitator at training programs world gross product is 2.6 per cent for 2012 and that it accounts for more aggregate productivity for Nigerian financial institutions 3.2 per cent for 2013, which is below the pre-crisis loss than absenteeism . Health and wellbeing is a since 1996. pace of global growth , . Some of the financial critical factor for success in today's business world.

The Bank Director 14 T h e D i r e c t o r ' s H e a l t h

particular office suite had a dedicated Another factor to contemplate at board elevator reserved for that floor! My client level is the impact of age on health. One of turned out to be a very pleasant person with the considerations for a position on the a curious sense of humor who apparently board of a financial institution or a enjoyed the 20 minute diversion from his multinational would probably be qualitative normally stressful day. After examining him, experience garnered over many years of taking his blood and filling forms for public service or engagement in the private imaging tests we exchanged pleasantries on sector. The board is not the place for my way out probably thinking our paths will 'kindergarten managers'. Years of never cross again. But it did. Twice. experience constitute value-added in the boardroom. Unfortunately there appears to The first time was at my instance. I received be an inverse relationship between health results of his blood work-up, which I was on the one hand and age as a variable. Age obliged to forward to the reinsurer. Looking is not a disadvantage but calls for greater through the result, some of his parameters attention to health and wellness. a developing country and will set the were on the upper side of normal while parameters for this column. many of them were frankly elevated. Yet, he The functional capacity of an individual's was symptomless. He did not present in a biological system increases during the first Why take this route? There are two options hospital neither did he have any complaints years of life, reaches its peak in early for achieving the goal of positioning oneself on the day of examination. The ethics of adulthood and naturally declines thereafter. for enhanced work performance and medical examinations for insurance forbid The rate of decline is determined, at least in improved quality of thought. A the doctor from disclosing the results of part, by our behavior and exposure across contemporary approach that is gaining these tests to the insuree. But how could I the whole life course. These include what global acceptance is to be interested in watch this pleasant gentleman stand on the we eat, how physically active we are and our health maintenance rather than the illness precipice of health and look the other way? exposure to health risks such as those management. Wellness programs are built Against ethics, I called his office and made caused by smoking, harmful consumption on this premise that promoting good health an appointment to see him as soon as of alcohol, or exposure to toxic substances. is more cost effective than managing an possible. The following Wednesday, I shared Taking dietary factors alone, it is said that illness. The maintenance program is driven the results with him and reiterated the food is not just about what we eat; it is by each individual taking more urgency of changing his lifestyle even about how much we eat, in what responsibility for his/her health rather than though he appeared to be in a relatively combination it is eaten, with whom we dine relying on the magic pill from the clinic. stable state of health. I promised to check up and what we choose to do after we have on him again but I never did. eaten it. The more traditional approach is hospital based, reactive, crisis oriented and we now Our second meeting was more fortuitous. I What then is the need to be established in know that it does not deliver the best had gone to see a relation in hospital and respect of executive health? The primary results. As a newly qualified medical doctor, walked past a patient with a heavily need is to promote physical and intellectual this is the approach with which I identified bandaged head in the hospital corridor. The health of bank directors. We need to for years as a practitioner in industrial patient was first to call me but I couldn't develop and share information, skills and clinics. Over the years, I had to ask and place his face or person even after rebooting other resources that will give our health the answer a simple question several times over: my brain several times. He then reminded same chance of success as we give our "What if I had seen this manager 6 months me of his 14th floor office and it flooded careers. This is particularly relevant as the ago, given this counseling on lifestyle back to my memory. "Did you have an Nigerian financial sector repositions itself changes and followed him up? Wouldn't accident sir?" No, he replied. He was just for a better future. Innovation, enterprise, the result be different from the crisis we recovering from brain surgery after a stroke. creative out-of-the-box thinking only comes have on our hands today?" A particular case His neurosurgeon told him that the stroke from healthy bodies and exceptionally was life changing for me. I was working in could have been fatal if he had not made healthy minds. And so this column may not the insurance industry and had to conduct concerted efforts over the past year to be directly concerned with diseases. Rather, comprehensive medical examinations for manage his stress levels, lower his blood it will take a pro-active, anticipatory clients proposing to purchase life insurance. pressure, change his diet to drastically approach to consider the determinants of One of such high-end clients had his office reduce his cholesterol levels and take up disease for this elite sector of our population on the 14th floor of a building on Broad regular exercise. I remembered a particular bearing in mind the demands and Street in Lagos. I was excited to do this challenge he had with alcohol and I wanted peculiarities of high-level positions in Africa. particular medical; after all how many times to know how he dealt with that issue. Health promotion, disease prevention, do you get to see top management clients "Alcohol is history" he said. This was a chilling wellness, improved productivity are all in the penthouse suite? In fact, this

The Bank Director 14 T h e D i r e c t o r ' s H e a l t h

encounter. It was surreal. And it changed my medical payments but also the opportunity the growing call for innovation, point of reference for practicing my cost of caregivers' time. It is the cost of lost resourcefulness and ingenuity in the profession. I have since then always asked man-hours, missed opportunities and Nigerian financial sector. The Director's myself what we can do now with this sometimes lost opportunities. It is about Health will position itself to be the resource 'patient-to-be' to ensure that he/she does the cost of recovery with loss of full capacity of first choice for top rate, cutting edge not become a patient. And I never miss the for speech, vision or movement. Its information on executive health and opportunity to tell busy, stressed managers extremely difficult to put a figure on that - wellness. The objective is to identify the how to protect their health by making small the real cost of ill health is personal. patient-to-be and steer him/her towards but regular investments in health. After all, health, away from illness. on a rainy day, one can only draw down on That is why we must take a holistic view of cumulative investments. health especially in light of the current Our paths may cross; it does not have to be demands of the economic challenges and on a hospital corridor. The strategy and thought process underpinning a bank director's health cannot be less robust. We cannot afford to take the traditional approach of waiting for Q u o t e s o f person the disease has than what disease patients to present in the hospital. We must Hippocrates - a the person has. collectively be on the look out for 'patients- m e d i c a l to-be' and make sure they do not become practitioner who is 7. Everyone has a doctor in him or her; we patients. Considering that the nation is regarded as the just have to help it in its work. The natural entrusting you with our collective resources, father of medicine healing force within each one of us is the your health and wellbeing is paramount. and author of the greatest force in getting well. Our food What can you do today and now, that costs Hippocratic oath should be our medicine. Our medicine little but will have great impact for your (circa 460-377 BC) should be our food. health, wellbeing and productivity? How will you do it? When can you make these 1. A wise man should consider that health 8. Any man who is intelligent must, on subtle lifestyle changes with the best is the greatest of human blessings, and considering that health is of the utmost results? How will know when you are learn how by his own thought to derive value to human beings, have the personal successful in repositioning your health even benefit from his illnesses. understanding necessary to help himself in as you strive to reposition your bank or diseases, and be able to understand and to financial institution? 2. If we could give every individual the right judge what physicians say and what they amount of nourishment and exercise, not administer to his body, being versed in each The health promotion interventions and too little and not too much, we would have of these matters to a degree reasonable for lifestyle adaptation being promoted today found the safest way to health. a layman. can hardly be considered groundbreaking. In fact many of them have been advocated 3. Walking is man's best medicine. 9. Even when all is known, the care of a man since the time of Hippocrates more than is not yet complete, because eating alone 2000 years ago. He believed that positively 4. Everything in excess is opposed to will not keep a man well; he must also take moderating health revolved around key nature. exercise. For food and exercise, while decisions and personal choices we make possessing opposite qualities, yet work everyday rather than decisions we take in the 5. There are, in effect, two things, to know together to produce health. face of a health crisis . The benefits of this and to believe one knows; to know is proactive approach are obvious and science, to believe one knows is ignorance. 10. Prayer indeed is good, but while calling numerous. Nonetheless I am aware that on the gods a man should himself lend a managers are often more concerned about 6. It is far more important to know what hand. cost. In the context of this business case what is the cost of health and the cost of illness? Sources: Health economists have done extensive i. World Health Organisation 2012. Available at http://www.afro.who.int/en/media- work on calculating the value of health/life centre/events/details/252-world-health-day.html Accessed on 29th February 2012 and the cost of illness. The consensus is that ii. World Bank 2012. Global Economic Prospects Jan 2012: Uncertainties and vulnerabilities. Available at it is difficult to place monetary value on a http://web.worldbank.org/WBSITE/EXTERNAL/EXTDEC/EXTDECPROSPECTS/EXTGBLPROSPECTS/0,, human life although there are various tested menuPK:615470~pagePK:64218926~piPK:64218953~theSitePK:612501,00.html on 1st march techniques for estimating the value of life. 2012. iii. United Nations 2012. World Economic Situation and Prospects 2012. Available at Determining the cost of illness appears to be http://www.un.org/en/development/desa/policy/wesp/index.shtml. Accessed on 1st March 2012 easier. The full cost of absence due to illness iv. Investopedia. Available at http://www.investopedia.com/terms/p/presenteeism.asp accessed 1st is calculated to be more than four times total March 2012 medical payments when the productivity v. Integrated Benefits Institute 2011. The Business Case for Managing Health and Productivity. Available loss from absence is added. I believe at http://www.acoem.org/uploadedFiles/Career_Development/Tools_for_Occ_ Health_ however, that the real cost of illness is Professional/Health_and_Productivity/IBIFull-CostResearch.pdf Accessed on 29th February 2012 personal. It is not only the cost of the vi. Brainy Quotes. Available at http://www.brainyquote.com/quotes/authors/h/hippocrates.html Accessed on 29th February 2012

The Bank Director 14 Mrs. Foluke K. Abdul-Razaq, Vice President, BDAN at the 14th AGM of BDAN recently in Lagos

The Bank Director 9 C u r r e n t M a t t e r s

The Future of Banking in Nigeria: Cashlite, Secure and Virtual

Introduction / background instruments to serve the unbanked, This will deepen the revenue base for the nation as This presentation describes how Chams see the more activity is brought into the formal sector and development of this industry going forward based increase the deposit base of our banks as a larger on its experience over the last twenty-six years in portion of the economy comes into the formal the provision of identity management and economy. electronic payment solutions to the financial services industry. Reforms It is difficult to ascertain what role the Bank Indeed we have witnessed more technological Directors will play in driving the reforms. The roles advancement in banking technologies and you ought to play in strategies and policies are processes in this year than the past five decades crucial and will even become more crucial with the combined. The next few months and years new waves of reforms coming your way. Reforms promise to be very revolutionary for your industry. have almost been the exclusive preserve of the government and the question is, should it be so? Moreover, I think we will have a CASHLITE and not Cashless Nigeria. No economy in the world has Some of the benefits of being proactive include: reached that utopian state of Cashlessness yet, as - Corporate governance far as we know. Becoming Cashlite, will - Lowering the cost of transaction substantially reduce the terrible wastes in currency - Reaching the unbanked profitably management, corruption, terrorism, robberies - Resolving Security issues – physical / electronic and business risk. It will promote efficiency, - Proffer locally based and sustainable technology accountability, non-repudiation and rule of law in solutions. our society. - It allows a structured approach to examine successful models and solutions in similar When the Cashless/Cashlite program of CBN is environments with regards to: combined with the Identity Management Mobile banking; and program, three of the major fundamental issues The future innovation of Electronic Wallets confronting you as banker KYC, PKI, and Non- repudiation of transactions would have been The future is in your hands or should I say in our resolved. Chams Consortium is implementing the hands. All the points earlier mentioned can be Identity Management Program with the Federal expanded to further buttress what needs to be Government through NIMC. done for the future of banking to be relevant and This is an extract of a paper secure in our environment. presented by Mr. Demola The future we see Aladekomo at the October The Banking industry and its stakeholders have We commend our CBN for the mobile licenses 2011 Forum of BDAN in Lagos. recently granted and with more to come in the next Mr Aladekomo is the Group grown significantly over the years. Despite all Managing Director of Chams these, a large percentage of the country remains few weeks. In many parts of this country, a mobile Plc. An Alumni of university of unbanked. To reach out this population, we will phone is the most sophisticated technology Ife, University of Lagos and The need even more innovative products and a spirit of available. Now imagine that with a little Lagos Business School, he is also the President of the exploration to go beyond the orthodoxy of serving cooperation between the banks, the telecoms and Nigerian Computer Society urban markets to creating products that truly serve mobile banking operators, we can create another and the Vice president of The the needs of our rural, agrarian and remote industry as large and transformative to the Lagos Business School Alumni Nigerian public. Society. Mr. Aladekomo is populations. one of the pioneers of the N i g e r i a n I n f o r m a t i o n It is crucial that we continue to expand access to We need to break out of the current models of Technology Industry especially financial services to the unbanked, across the banking with branches, to engaging and in the Payment and Identity fields and he established country and to create effective and secure empowering the populace to act as middle-men in Chams in 1985.

The Bank Director 15 C u r r e n t M a t t e r s

The Future of Banking in Nigeria:

Integration of virtual bank Account POS transactions for mobile platform with POS terminals for phone POS payment Pervasive usage of Bank debit cards for POS transactions Integration of virtual bank Account for mobile platform with POS terminals for phone POS payment Pervasive usage of Bank debit cards for

THE ECONOMY AND BANKING TERRAIN

transaction processing. We need to share or In a report from 2010, the McKinsey Global transfer some of the risks to a lower level business Institute estimates that Nigeria's manufacturing transaction. We need to start thinking and finding and services account for less than 45% of Nigeria's solutions. The current western models are GDP. As access to financial services expands, we expensive to run and maintain and they have have the opportunity to raise that number, helping shown huge cracks. reduce the nation's dependence on oil, create prosperity and financial independence for a larger Conclusion portion of the public. In conclusion, we must diversify our banking products and deepen service, not only in the urban These technologies have in them the power to be areas but also in the rural areas. If it is not truly transformative; to reduce waste by making profitable to bring bank branches to these areas, business more efficient and encouraging then let the banks work aggressively to support entrepreneurship and giving banking access to mobile and terminal distributors who can bring people who might not otherwise have it. alternative modes of service to them. As we all work towards a future of banking in The Bank Director's Association, The Banker's Nigeria that is cashlite, secure and virtual, we wish Committee and all of you in this room have it in you our Bank Directors very fruitful deliberations. your power to play a fundamental role in increasing the nation's prosperity by boldly Thank you for your time and God Bless You. pushing banking to the unbanked,

The Bank Director 16 Mr. Sam Cookey Jr. at the 14th AGM of BDAN in November, 2011

The Bank Director 11 Significant opportunities available to various stakeholders

Stakeholder/Expected Benefits Areas to support (not exhaustive)

Government ? Tax incentives to drive adoption of electronic payments ? Laws to support electronic processing and payments Continued support of E-payments drive Optimize tax revenue collection ? ? through own internal processes ? Increased economic growth (positive correlation with increased payment efficiency) ? Increased financial inclusion

Consumers

? Consumer sensitization and awareness ? Consumer education-knowledge of their ? Faster, easier payments rights Increased convenience/access ? ? Feedback forums to regularly engage (more payment options) various customer segments and monitor Reduced risk of robbery ? quality of dispute resolution

Corporations

? Better access to capital due to ? Embrace alternative channels – for shorter payment processing internal use and dealing with 3rd parties times ? Sign-up for Direct Debit (where ? Increased efficiency of payment applicable) processes and accounting Transfer some efficiency benefits to ? ? Reduced revenue leakages customers via incentives to encourage e- channels ? More efficient treasury management

Banks

? Increase availability, functionality and dispute resolution process for e-channel solutions ? Begin customer engagement on alternative platforms now and participate ? Efficiency through electronic payment processing in engagement sessions This list has been culled from a Reduced cost of operations ? Order POS terminals and source paper presented in October ? merchants 2011at the last BDAN forum in (cash handling) Lagos by Ms. Eyitope St. Mathew- Increased banking penetration ? Leverage NIBSS service offerings Daniel, “Cash-Lite Lagos: An ? Assessment of our State of Readiness.” Ms. Eyitope St. Mathew-Daniel is the Head, Shared Services, Central Bank of Nigeria

The Bank Director 17 Personal Feedback on Cashless Lagos Personal Feedback on Cashless Lagos

Question: What is your experience so far with “Cashless Lagos” “ went grocery shopping sometime in January and I could not pay with Imy card because the POS was not functioning. I was given the goods on the condition that the teller follows me to a nearby ATM to retrieve their money. On getting to the ATM of a very prominent bank, the machine was not dispensing cash. You can imagine my frustration at the system. How can we say we are ready for a cashless society when all the infrastructure are not put in place?” - An HR Management professional, wife and mother

had a funny experience at a bank weeks ago. I sent my accountant to Idraw N750k (on a company account to which I am sole signatory) and forgot it was Cashless Lagos (sic). He was sent back. I called the Head of Operations of the bank (branch) and threatened to close the account if they closed before I got the money. They got creative! I was told to write 5 cheques for the same guy of 150k each. He came back with my 750k and everybody was happy! - Printing Press Business Owner

e are doing a turnover of over a million (naira) on the average Wper day {monday - friday}. In preparation for the cashless Lagos, we applied for the POS terminals from our bankers (please excuse my not mentioning them) since last year. I personally signed the documents for the application since last year. We, as at this moment have not received any terminals. Our conclusion as a company is to open several accounts for our receipts within the same bank or several banks and consolidate later or spend directly as the need arises. - Owner of a medium sized poultry farm

n as much as I appreciate the idea...i think a lot still has to be done in the Iarea of awareness. More and more people still dont know what they stand to benefit or why they should embrace the policy. Personally, I am bothered with effective implementation...for instance I had to travelled more than 1km few weeks back before I got an ATM to dispense cash..."NO CASH" in most available ATMs...also, if i risked paying for an Item online and at the point of making payment the receiving portal and website of the issuing bank lost connection and my card already debited..it will take more than 10days to get refund..a lot of issues like these are still yet unattended to. - Business Development officer for an indigenous social marketing site

The Bank Director 18 Personal Feedback on Cashless Lagos

support the cashless Lagos because it is easy, convenient, fast and reduces manpower Iwasted on the road and in banks (my staff used to do a lot of this); but my major fear is for the hackers as we're all aware of the increasing internet crime rate in this country of ours. - Business Manager of an SME

rom experience in my company, as so many customers that make cash lodgment into our Faccounts are already finding it very difficult as we mandated them to do fund transfer or lodge in cheque. Though the penalty is yet to begin, it appears that it will slow down predominantly cash based business transactions when fully enforced. From my view as a church pastor - churches and related religious organizations where tithes and offerings are paid mainly in cash, so many members may not be able to pay even when they are able and willing to do so. - Official at a company involved in manufacturing and sales of livestock feeds, Vet drugs, Poultry Equipments and Day Old Chicks

y unit is involved in the payment of troops for various operations within Lagos and Mthe country at large. The Operation Mesa comes to mind. The soldier to “ be sent on a mission must be paid his allowances (in cash) before he is even given a weapon to go and prevent crime or terrorist. Telling him that funds will be paid electronically to his account that he probably won't have access to throughout the operation will not fly. The slogan here is that - his salary can go to his accounts for his family, but his operations allowances must be paid to him CASH! We would get there but some of these policies require time… - Finance officer in one of the arms of the military

o be honest, I have found it a bit inconvenient not being able to issue a cash cheque of Tover N150,000.00 to a third party. It meant having to leave my desk to do this. But as usual, when there is a will, ...It simply means, I have to explore the other available electronic transfer options - Pharmacy business owner

adam, they one we have been doing, they have not given (remitted) us our money” M- the response of the cashier at a busy supermarket in Ebute Metta. I had to drive to a bank ATM to withdraw N40,000 to pay for my monthly shopping for groceries. At another mega store, they only accept Visa Card from us, not Master Card nor Verve! - Management Consultant, wife and mother

Point of View takes a pulse of a random selection of people living in Nigeria. They provide feedback on a number of issues that change with each edition of the Bank Director.

The Bank Director 19 P r u d e n t i a l G u i d e l i n e s “Haircut” Ajustments – A Handy Tool for Quick Basic Credit Appraisal

Introduction

The appraisal of facilities is one of the key functions of banks' Board of Directors and its management. The Code of Corporate Governance for banks in Nigeria, section 5.3.12, therefore, makes it compulsory for banks' Board to have a committee specifically dedicated to the appraisal of credits. Experience has however, shown that it is one of the most 'tricky' assignments of banks – both at the Board and Management levels. This difficulty has manifested in the high level of 'toxic' facilities within the Nigerian banking system, which contributed in no small way to the distress witnessed in the sector between 2008 and 2010. As a consequence, the CBN intervened, through the Asset Management Corporation of Nigeria (AMCON) to take about N 4 trillion of non-performing loans (NPLs) off the books of the banks.

One of the key constraints is 'time' – the need for the bank to quickly appraise a customer's performance so as to decide whether or not to avail him more funds. There is also the need to monitor the performance of facilities proactively so that corrective actions can be taken early enough before the facility becomes irredeemably bad.

Haircut adjustments, which was introduced into the Nigerian banking system in May, 2010, through the Prudential Guidelines (PG) for Banks, have globally proved useful in improving credit appraisal in the banking system.

Definition and Use of “Haircut” Adjustments in Nigeria

A haircut is defined as the percentage that is subtracted from the valuation of an asset that is being used as collateral for a facility to reflect the perceived risk of holding the asset. The process for haircut adjustment was introduced to encourage banks to utilize more credit enhancement and mitigation strategies. Haircut adjustments are also used for other purposes, including: for the calculation of capital requirement and in setting margins. This is an article written by Mr. Amachukwu C. Okezie, a Collateral instruments that are eligible for haircuts in the Nigerian banking sector include: deputy director of the Central · Cash (as well as certificates of deposit or comparable instruments issued by the lending bank) or bank of Nigeria. He represents CBN on the council deposits with the bank which is incurring the counterparty exposure) of BDAN · Treasury bills and other government securities. · Quoted equities and other traded securities.

The Bank Director 20 N e w s

· Bank guarantees and receivables of blue chip companies. · Residential legal mortgage · Commercial legal mortgage · Other collaterals as defined by the CBN from time to time.

E = BL - VC (1 – HC)

Where: E=the exposure of the bank to the customer BL=the outstanding balance on the facility VC=the book value of the collateral and HC = the haircut (or weight by which the value of the collateral is reduced)

The PG in section 12.13(a)(5) stipulates HCs for different types of collateral as shown in table 1 below;

Haircut adjustments Description of Collateral weightings

Cash 0% Haircut adjustments are applied only when Treasury Bills and government secu rities e.g. bonds 0% facilities have been classified 'lost'. The PG Quoted equities and other traded securities 20% section 12.13(a)(1) stipulates that before Bank guarantees and Receivables of blue chip companies 20% haircut adjustment may be applied on a Residential legal mortgage 50% collateral, it must meet the following Commercial legal mortgage 50% conditions; Table 1. Weights Attached to Different Types of Collaterals

1. Must be Perfected; 2. Realizable, with no restrictions on sale; and 3. Regularly valued with transparent method of valuation;

Haircut adjustments are used in calculating the level of provision a bank should make on a facility. They can also be used to monitor facilities by checking that the value of the collateral covers the outstanding value of facilities at each point in time. a. For provisioning, E in equation 1, becomes the value of provision to make. Theoretically, as long as E < 0 the bank has less to worry about on the facility. If however, E > 0, then the bank must make a provision of N E for the facility. b. To monitor performance of a facility in terms of the value of collateral, even when a facility is not 'lost', a positive value of E for a facility indicates that the value of the collateral no longer covers the exposure of the customer to the bank.

Challenges There are some challenges to the application of haircut adjustments. A major one is the requirement to ensure that the collaterals are perfected. The process of perfection of collateral in Nigeria is tedious, time consuming and often involves the payment of large fees, usually passed to the borrower. This generally discourages the perfection of collaterals.

In addition, the fact that active markets for most collaterals do not exist in Nigeria, impairs the objectivity of some valuations.

For the banking system to derive the full benefits of haircut adjustments, bank regulators and banks must join hands to address the inherent challenges.

References/ Bibliography 1. The New Prudential Guidelines for Deposit Money Banks in Nigeria 2. Code of Corporate Governance for Banks in Nigeria, Post Consolidation 3. Collateral Adjustment and Provisioning for Lost Facilities' www.scibd.com/.../Collateral-Adjustment-and-Provisioning-for-Lost- Facilities retrieved February 26, 2012. 4. K a m i n s k a , I . ( 2 0 1 2 ) . ' O v e r p l a y i n g t h e r o l e o f h a i r c u t s i n t h e c r i s e s ' ; http://ftalphaville.ft.com/blog/2012/02/08/873451/overplaying-the-role-of-haircuts-in-the-crises retrieved February 26, 2012.

The Bank Director 21 B o a r d C o m p e n s a t i o n Remuneration Survey “Different persons bring different levels of expertise to the Board. It is time to pay directors based on experience and performances and not flat across the board” – Chairman, Lloyds Business Group, 2010

This quote rings true of the findings from a recent pension contributions for directors, cash retainer, survey by the FITC on behalf of BDAN on influence of regulation, shareholder optics, board meeting fees and differentials, committee pay, Remuneration of Non-Executive Directors in the decline of perquisite offerings relationship of size financial services sector. The report supported the of bank to directors' remuneration, etc. notion that payment of remuneration to non- executive directors O n e o f t h e foundational principles (NEDs) of banks has gleaned from the b e c o m e a v e r y report is that: “Director sensitive issue, as it compensation should could affect the be approached on an motivation of the overall basis, rather staff, executives and than as an array of separate elements”. nonexecutives of Furthermore, FITC these banks. recommended three The aim of the survey types of remuneration was to develop a r e m u n e r a t i o n frameworks which any framework that will bank in Nigeria can take choose and consider in cognisance of both d e v e l o p i n g a the similarities and remuneration policy for d i f f e r e n c e s i n i t s N o n - E x e c u t i v e c o n t e x t u a l Directors. The report characteristics of the also highlighted global member banks in Nigeria, reflect the practices on ways of r e n e w e d ensuring principles of responsibilities of the e q u i t y, f a i r n e s s , board of these transparency, risk and banks and evaluate accountability apply in best practices of their any consideration of contemporaries in changes in stakeholder other nations. expectations and NED remuneration T h e recommendations were based on research (using relevant and verifiable primary and secondary At the end, FITC recommended number of general data), in the interest of all stakeholders, with a principles to guide remuneration of NEDs. BDAN focus on business continuity and effective has considered the possibility of making this governance of respective banks. survey a regular event and thereby advocate that, for enhanced corporate governance practices in From FITC's findings, remuneration payable to the the sector, publicly quoted banks fully disclose the NEDs of banks are mostly fixed by each bank. This philosophy and processes used in determining is probably a reason for the distinct concern director compensation and the value of all among the respondents, that their remuneration elements of compensation, in their annual be increased. The findings also covered local and international issues of bonuses, share schemes, accounts.

For a copy of the report, representatives of organisations can contact the BDAN President, The Olor’ogun (Dr.) Sonny. F. Kuku OFR through the BDAN Secretariat 164/166 Murtala Muhammed Way Ebute Metta, Lagos Nigeria.

The Bank Director 22 News around the world Lloyds Banking Group Olympus names board confirms bonus clawback member as new president

Lloyds Banking Group has canceled bonus Scandal-hit Olympus on Monday 27 February, 2012, named current board member and executive payments for its former chief executive and a officer Hiroyuki Sasa as its new president after one dozen other directors over their involvement in the of the biggest financial scandals in Japanese corporate history. Olympus plans to hold an costly misselling of payment protection insurance. extraordinary general meeting on April 20, at which Lloyds, struggling to emerge from part- shareholders will be asked to approve the new 11- nationalization, has set aside 3.2 billion pounds member management board, which includes eight ($5.1 billion) to reimburse people persuaded to people from outside the company. Olympus, buy policies which they did not need. That's by far embroiled in a cover-up of massive losses from the the biggest provision by any British bank. 1990s, said Monday its entire board will tender resignations at the April 20 shareholders' meeting. Former CEO Eric Daniels will lose 40 percent of his bonus for 2010, Lloyds announced Monday, Source – AFP & www.canadianbusiness.com worth about 580,000 pounds ($920,000). The bank will withhold shares of that value which were part of his deferred bonus. Sterling Bank Appoints Four other directors would lose 25 percent of their bonuses, and eight senior executives would lose Directors... 10 percent, the bank said. terling Bank recently announced the Sappointment of two non-executive directors to its board. They are Mr. Aderemi Kolarinwa and Mr. Akanji Fashanu. Their appointment which Source - has since been approved by the Central Bank, takes immediate effect. Executive Directors of Mr. Rasheed Aderemi Kolarinwa holds a Masters degree in Business Administration from the World Bank visit Accra Schulich School of Business, York University Toronto, Canada in 1979 while Mr. Musibau Akanji Fashanu holds a Bachelor of Science degree in Executive Directors of the World Bank Economics from the University of and is Group (WBG) were in Accra for a five- currently a Fellow of the Economic Development day familiarisation visit, between 2 – 6 Institute (EDI) of the World Bank. February 2012 according to a statement from the Public Relations Source – www.sterlingbankng.com Unit of the Ministry of Finance and Economic Planning of Ghana. FCMB appoints management

The visit afforded the Directors, who were team for Finbank accompanied by two Alternative Executive irst City Monument Bank (FCMB) Plc has Directors and four advisors, the opportunity to Fappointed a new Management Team for the acquaint themselves with the programmes and acquired FinBank led by Mr. Peter Obaseki as priorities of the Government and to ascertain the Managing Director/Chief Executive Officer. This impact of the WBG's interventions in Ghana. appointment comes following the recent approval by the Securities and Exchange Commission (SEC) Source - www.ghanaweb.com of the acquisition of FinBank. His appointment takes immediate effect.

Source: Thisday Newspaper 15 Febraury 2012 pg 9 Changes to directors' personal criminal liability

Australia: Proposed amendments to directors' liability laws have recently been released for public comment. The proposed amendments, including proposed amendments to the Corporations Act 2001, aim to ensure that where legislation imposes personal criminal liability for corporate fault, it is imposed in accordance with principles of good corporate governance and criminal justice and in a manner that will promote responsible entrepreneurialism and economic growth. The proposed amendments form the first part of the Commonwealth government's implementation of the Council of Australian Governments' (COAG) Directors' Liability reform project. The exposure draft of the Personal L i a b i l i t y f o r C o r p o r a t e F a u l t R e f o r m B i l l 2 0 1 2 c a n b e f o u n d a t http://www.treasury.gov.au/documents/2300/PDF/Exposure_draft.pdf Source: http://www.boardmatters.com.au

The Bank Director 23 News around the world World Bank Board of Executive Directors approves US$15 million loan for Municipal Water Project for Armenia

he World Bank's Board of Executive Directors approved a US$15 million loan for the Municipal TWater Project for Armenia, Tuesday. The Project will support improvement of the quality and availability of water supply in selected service areas of the Armenian Water and Sewerage Company (AWSC), the WB Office in Armenia reports. The activities proposed under the Project will directly benefit over 133,000 residents in the cities of Ashtarak (Aragatsotn region), Masis (Ararat region) and Echmiadzin (Armavir region) and 15 neighboring rural settlements. The investments will increase average daily supply of drinking water service from 12 hours to 17 hours, improve water quality, decrease water pollution risks and improve customer service. About 21,000 residents will also benefit from installation of new meters. The Project will generate multiple benefits for the public and private sectors by creating a more conducive environment for service delivery to users and stimulating economic activities. Source - ARMINFO News Agency Lucy Surhyel Newman Elected International Director of the Global ISPI Board he International Society for Performance Improvement (ISPI) has elected Dr (Mrs) Lucy Surhyel TNewman, Managing Director/CEO of FITC as its International Director. With this, she becomes the first Non American/European to hold the International Director role, on the 9 – Member Board of the professional association based in Maryland, USA since it was founded 50 years ago. She will serve in this capacity for the period 2012-2014 over which she will work with the ISPI Board in championing policies that will impact the growth of ISPI globally. Dr (Mrs) Newman has over 24 years of experience derived from a development finance institution, four banks in Nigeria, the Performance Improvement Practice of PricewaterhouseCoopers (PwC) Nigeria, and FITC where she has been CEO since May 2009. She is also chairman, FSS2020 Human Capital Development Implementation Committee; member, Sub-Committee on Ethics & Professionalism of the Nigerian Bankers' Committee; and member, Executive Committee, West African Bankers' Association and member, Bank Directors Association of Nigeria (BDAN). Under her leadership, FITC has witnessed a phase of its own transformation, while assisting the implementation of various performance improvement programs for organisations across sectors in Nigeria. In furtherance to this, she also got FITC admitted aa an organisational member of ISPI as its principles compliment the FITC mandate of human capital acquisition deployment development asn optimisation. F L A S H P O I N T S

Billion – number of Estimated number of naira notes Nigeria 105days NEDs spend 3prints annually attending to board (Punch newspaper) matters (FITC, BDAN Bank directors’ Remuneration Survey) $1.1 89 3to2 $1.1 trillion - Islamic banking assets forecast by end of 2012 (Source: 89 number of Estimated ratio of NEDs to Ernst & Young (2011) World Islamic banks in Nigeria EDs (Source: estimated from Banking Competitiveness Report before July 2004 information on NDIC 2011 – 2012; E&Y, Dubai). recapitalization website)

The Bank Director 24 W o m e n i n L e a d e r s h i p Women: Agents of change

Appointing Women into Boards of Corporations, Companies and Government Owned Agencies; Will Affirmative Action or Enabling Legislation Work?

By Dr (Mrs.) Nike Akande OON Director, Union Bank of Nigeria Plc

Background

Much has been written and said about the absence of women in senior decision making roles in Africa. But we know that from the beginning, it was not so! In the past, we had women in Nigeria like Moremi, Ladi Kwali, Margret Ekpo, Sawaba Gambo, Mrs Ransome Kuti, Efunsetan Aniwura and so on. It was then practically impossible to ignore women in decision making process. Women and their views were considered to be important, critical and highly valued in the development of the society. Today, we are continuously faced with socio-cultural, political, institutional, and economic barriers which has resulted in less women occupying board of corporations, top government hierarchy and leadership positions.

Introduction

Sixteen years ago, in September, 1995 to be precise, women around the world gathered in Beijing, China for the Fourth World Conference on Women. The product of that Conference was the Beijing Declaration and Platform for Action. The Beijing Platform had two goals:

1. To take measures to ensure Women's access to and full participation in power structures and decision making 2. To increase women's capacity to participate in decision-making and leadership Among the various action plans proposed to achieve the above goals include measures to protect and promote women's equal rights with men, creating a critical mass of women leaders in strategic positions, governments to establish the goal of gender balance; women to hold 50% of managerial and decision-making posts by year 2000, etc. The Dakar Platform which is the African regional version of the Beijing platform reinforces the objectives of the Beijing Platform as it seeks to promote affirmative action to develop a critical mass of women in leadership positions; ensure women take 35% of decision-making positions, reviewing and challenging electoral processes and discriminatory practices that hurt women's aspiration to political office, etc

Sixteen years after, one can say that some level of progress has been made. We have seen women breaking the traditional boundaries and taking up ministerial positions hitherto dominated by men such as, Finance, Industry, Works and Petroleum Resources and acquitting themselves creditably. In terms of elective positions, we have witnessed female deputy governors, state assembly speakers, and a house of representative speaker. We have also witnessed more female representation in the national and state assemblies, as well as, more female Chairmen of Local Government Councils. The Federal Government has also put in place a National Gender Policy which stipulates 35% affirmative action for women in politics and public positions. In this paper, I want to focus on three key areas : " What is happening in Africa, " What is happening in Nigeria, and " What we need to do differently.

What is Affirmative Action and Enabling Legislation?

Affirmative action refers to policies that take factors including "race, colour, religion, gender, or national origin" into consideration in order to benefit an underrepresented group, usually as a means to counter the effects of a history of discrimination. It is a collective agreement to give preference to certain groups in a society in order to correct certain imbalances. The focus of such policies ranges from leadership, employment and education to public contracting and health programs. In this case, the affirmative action is to ensure that women who constitute 50% of our population have equal access to leadership positions as their male counterparts. An enabling act on the other hand is a legislation by which a legislative body grants an entity which depends on it for authorization and/or legitimacy the power to take certain actions. For example, enabling acts often establish government agencies to carry out specific government policies in a modern nation state. The effects of enabling acts from different times and places vary widely. In a nutshell, within the context of this paper, the This is an article submitted enabling legislation is to provide legal framework for women to occupy leadership positions in institutions, by Dr. (Mrs.) Nike Akande corporations and government positions. OON, a Non-Executive Director of Union Bank of What is happening in Africa? Nigeria Plc and a current member of the BDAN Progress report from other Countries in Africa shows that in South Africa, the ruling African National Congress council. Dr. (Mrs.) Akande is a former Minister of (ANC) Committed itself to affirmative action by reserving 30% of parliamentary seats and 50% of local Industry, an Investment government seats for women. Uganda has created a policy that ensures that women constitute at least one expert and a consultant. third of any government committee and that each district selects one woman representative to parliament.

The Bank Director 25 W o m e n i n L e a d e r s h i p

Women: Agents of change

Namibia has a quota system for its local councils which ensure that women fill a certain percent of the positions at the regional and local levels. Zimbabwe, Angola and Tanzania also have quota legislations that guarantees certain number of women in the legislative assemblies. In terms of actual representation of women in the national assemblies, South Africa leads other African Countries with over 29% women representation and this Notwithstandin owes mainly to the affirmative action. g the marginal Notwithstanding the marginal progress made so far, we are still a long way from attaining the objectives of the progress made Beijing and Dakar Platforms. so far, we are still What is Happening in Nigeria? a long way from attaining the The present score card of women with elective positions in Nigeria is to say the least, worrisome. A comparative analysis of the performance of women in the 2007 elections and the recently concluded 2011 elections reveal objectives of the that the fortunes of women appear to have declined. In 2007, we had six (6) Deputy Governors as against two (2) B e i j i n g a n d in 2011; nine (9) Senators in 2007 against seven (7) in 2011 and twenty-seven (27) House of Reps members in 2007 against 19 in 2011. As I speak to you, there is no woman among the principal officers of the two legislative Dakar Platforms. chambers. In other words, there is a 0% representation of women in the leadership of the Senate and House of Representatives. Of the 36 State Assembly Speakers, only one is a woman. Of course, there is no female President, Vice President or Governor.

This poor showing is in spite of the vigorous campaign by our dear first Lady, Her Excellency Dame (Dr.) Patience Jonathan, across the nation through her Women for Change Initiative (W4CI) advocating for 35% female representation in public offices. A major campaign promise of the President is to ensure that women enjoy at least 35% representation in decision making process.

Mr. President has started on a promising note with the appointment of 13 women (which is about 31%) as ministers. This underscores his willingness to abide by the affirmative action plan which the government has committed itself to. We hope that this will be sustained in board appointment for federal agencies.

However, we must note that no matter his good intentions and willingness to keep his campaign promise to women, there are a lot of factors and forces that come into play when it comes to sharing political offices. Goodwill and willingness alone cannot get us to the Promised Land. The fate of Hon. Mulikat Akande-Adeola is a case in point. In spite of Mr. President's support and the backing of her party, as well as being favoured by the zoning principle, she still lost in a manner that suggests that she probably lost on account of her gender. We all know that she would have been Speaker today if there is a constitutional provision for a woman to occupy one of the top four offices in the country.

Some may argue that President Yar'Adua with Chief Obasanjo's support ensured that Hon. Patricia Etteh emerged Speaker of the lower Chamber in 2007. But we all witnessed what happened to her. It can arguably be said that she was removed on spurious allegation.

Let us face the truth; except we work concertedly to get the Gender Affirmative action enshrined in the nation's constitution, the goal of the Beijing Conference will remain a mirage. If African countries like, South Africa, Angola, Zimbabwe, Tanzania, Namibia and Uganda have constitutional provisions for Gender affirmative action, I honestly see no reason why Nigeria does not yet have a constitutional framework guaranteeing 35% women representation in strategic decision making positions.

It is against this backdrop that I think the topic: Appointing Women into Boards of Corporations, Companies and Government Owned Agencies; will Affirmative Action or Enabling Legislation work? is appropriate and timely. This is more important since the Beijing Conference targets 35% women representation in all areas of decision if we can have making and not just with respect to ministerial appointments. g e o g r a p h i c a l balancing, ethnic Whilst enabling legislation will create room and remove all obstacles - political, economic, social, cultural etc - balancing and to impeding women's appointment into such strategic leadership positions, it is imperative to note that eternal vigilance on the part of women interest groups is needed to ensure absolute and sustained compliance. Enabling s o m e e x t e n t legislation is needed to empower women groups with the legal powers to enforce compliance just as vigilance, r e l i g i o u s sustained advocacy and orientation are also required to prevent any form of manipulation. balancing, why Interestingly, framers of the Nigerian constitution had the Federal Character principle enshrined in Section 153 of can't we have the 1999 Constitution (As Amended). This guarantees all geo-political zones/states fair/equal consideration in g e n d e r the appointments/recruitments into ministries and government agencies. A Federal Character Commission is balancing? established to monitor and ensure compliance by the Ministries, Departments and Agencies (MDAs). There is also an unwritten code which stipulates that the President and the Vice President, the Senate President and the Deputy, the Speaker and the Deputy Speaker, Governors and their Deputies do not come from the same geo- political zone. This code is strictly adhered to by all the major political parties.

My question is: if we can have geographical balancing, ethnic balancing and to some extent religious balancing, why can't we have gender balancing? Do we not have enough qualified and competent women to man the positions? We have had women who have served with distinction and their performances were generally

The Bank Director 26 W o m e n i n L e a d e r s h i p

Women agents of change

adjudged to be outstanding. Names like Prof. Dora Akunyili, Pro Bolanle Awe, Dr. Ngozi Okonjo-Iweala and Oby Ezekwesili readily come to mind. We have also respected women like Chief (Mrs.) Solanke (SAN) who have distinguished themselves on the board of several organizations. The above examples show that women have what it takes to excel if given the opportunity. It is time to move beyond tokenism It is disheartening that of the 36 State Assemblies; only one has a female Speaker. The situation is not different in a n d m o v e the appointment of Commissioners and Special Advisers. Take Lagos State for instance, a State that has the singular honour of producing 3 female Deputy governors in the present democratic dispensation as well as being towards achieving the state to produce the first female deputy governor, out of the 22 recently appointed commissioners only 3 are the diversity of women, representing a mere 13.6%. If women can have such a poor showing in a state regarded as gender t h i n k i n g , friendly, I leave you to imagine what the fate of women will be in less gender friendly states. experience and The situation is worse with respect to the boards of corporations, companies and government owned agencies. expertise needed Because they are numerous and are seldom in the spotlight, women interest groups hardly beam their searchlight t o d a y a n d i n on them. Very few women are appointed into the boards of government agencies. As for companies, since women do not have the economic muscle to own controlling shares or be major shareholders in these t o m o r r o w ' s companies, they are not reckoned with when it comes to composition of the boards. institutions. This ugly scenario should not be allowed to continue. Besides amending or expanding the 1999 constitution to include gender balancing, i.e equality of opportunities for men and women in political and public offices, I will also propose that the National Assembly should enact a law making it mandatory for any company listed on the stock exchange to have at least 30% women representation on their board.

What do we need to do differently?

It is time to turn our attention to the need for structural reform if we are to bring about lasting change in the fortunes of women occupying leadership positions in Africa. It is time to move beyond tokenism and move towards achieving the diversity of thinking, experience and expertise needed today and in tomorrow's institutions. We need to change the current system. It does not mean that we give up on the current initiatives, but it does imply that we need to understand, and very well so, that on their own, they are unlikely to achieve a dramatic increase in the number of women occupying leadership positions.

To transform our current situation, we need to emphasize and build a culture of merit; we need to get serious about monitoring what is happening in our institutions and organizations and set realistic timelines for change. If we feel that change is too slow in coming, as it presently is, we need to push for legislation and enforce same.

Our focus should be on changing the systems that are in place, rather than continuing the present "handout" approach of we are "helping women". What I am saying is simple: It is time to stop "fixing" women and start fixing the system.

A structural reform is now required to bring about real change in the composition of Nigeria's executive ranks. We need new initiatives to address the lack of women on company boards and government positions starting from Corporate Affairs Commission (CAC), Securities and Exchange Commission (SEC), the Nigerian Institute of Directors (IOD), Until we address some of the systemic problems leading to women's underrepresentation in corporations and government institutions, the goal of harnessing the immense potentials of women for national development may not be achieved. Even if you have a right, you must fight for it. " Women must have compulsory education and qualification " Example of Lagos State, Oyo State " Compaign for our rights What I am saying In conclusion, the truth is that when you train a man, you train an individual, but when you train a woman you is simple: It is time train a nation. Women are change agents, women are agents of development, women are equal stakeholders in to stop "fixing" the African project and requires equal opportunity to contribute to the nation building process. women and start I will finalize by quoting from the women for change initiative anthem. fixing the system. “All across the world Women are longing to be free No longer in the shadows Forced to stay behind But side by side in true equality”

I believe we shall get there, and this is the time for action.

The Bank Director 27 O p i n i o n Was Steve Jobs a success as CEO and Chairman?

A recent article from Reuters reported that an I argue that a business cannot thrive if such a influential public-sector union in the US has balance is not in place. Whilst an excess of called for the separation of the roles of CEO and monitoring makes it difficult to do business, the Chairman in nine big companies such as complete lack of monitoring which occurs when Goldman Sachs and JP Morgan. power is concentrated in one pair of hands leaves a The US, of course, is notorious for role duality at company vulnerable. the top (a subject I have explored in great detail in It is true to say that the combined role can be made my book “Leading the Board”.) to work: look at Steve Jobs' leadership at Apple. He Given it is CEOs who call the real corporate shots was the founder of the company, was disliked, left, it is no surprise that many CEOs chose to combine saw Apple falter, return and saw it rise to the two roles. But what long term value can be phenomenal global success. Yet the truth is that realised through this arrangement? outstanding leadership is a rare phenomenon. The problem is that Chairmen need to be able to What management research has consistently shown fulfil two distinct roles. The first is to mentor the is that when corporate power lies with one person, enterprise, that is to say befriend the strategy can become idiosyncratic to that individual, management and support them through crises or leaving the business vulnerable when they depart or complex market problems, which is no mean task if their idiosyncrasies prove to be out-of-touch with even when the corporate governance system is in market realities. Culled with permission from place and working well. The second duty is to My view is that the roles of CEO and Chairman must the blog of Andrew Kakabadse monitor those in charge, to ensure transparency, a n d N a d a K a k a b a d s e be split. The CEO must be the leader of the www.kakabadse.com to identity risks, defend the reputation of the corporation and the Chairman must be the leader of Andrew and Nada are experts corporation and police the management. One the governance process and the board. in top team and board person doing both well on themselves in consulting, training and Although idiosyncrasies will still exist, interests will particular is a hugely demanding task. development. They have a be balanced and no one personality will be able to combined 40 years experience What we are witnessing, however, in the case of working with some of the overwhelm the strategic thinking/implementation world's leading organisations, dual CEO and Chairman roles, is that 'monitoring' process and the balance between monitoring and including Credit Suisse, the is slowly being eroded and being replaced by mentoring will still be kept intact. Scottish Executive, the Police 'mentoring'. Service of Northern Ireland and the Bank of Ireland.

The Bank Director 32 BDAN Hall of Fame Council Members from inception

1997-2002 2002 - 2004

1.Maj. Gen. G.O. Ejiga Rtd President 1.Prof Green Nwankwo President 2.Prince Gbolahan Dada Vice President 2.Alh. Hassan Momodu Vice President 3.Engr. Adedoyin Adelekun Member 3.Chief A.S. Awomolo SAN Secretary 4.Dr. O. Alo Member FITC 4.Alh. Umar Hamid Fin. Sec. 5.Chief I.O. Dada Secretary 5.Amb. Moses O. Ihonde Pub. Sec. 6.Alh. Umar Hamid Financial Secretary 6.Alh. Aliyu Salman SAN Member 7.Alh. Hassan Momodu Tresurer 7.Prof. Theo A.J. Ogunbiyi Member 8.Chief (Mrs.) M. Okang Out-Okeke 8.Dr. O. Alo Member FITC 9.Mr. S. O. Alashi Member (NDIC) 9.Mr. S. O. Alashi Member NDIC 10.Prof. G.O. Nwankwo Member 10.Mrs. A.T.O. Akingbola Treasurer 11.Dr. Ogunniyi Omotosho (Late) Pub. Sec. 11.Mr. Goodie Ibru Member 12.Representative of FBN 12.Alh. Hassan Ahmed Member CBN 13.Representative of UBA 14.Representative of UBN 15. Representative of CBN

2004 - 2006 JULY 2006 – FEB. 2008

1.Alhaji Aliyu A. Salman (SAN) President 1.Mrs. M. O. Onasanya President 2.Amb. M. O. Ihonde Vice President 2.Rev Canon Segun Agbetuyi Vice President 3.Mr. Kola Awodein (SAN) Secretary 3.Mr. Kola Awodein (SAN) Secretary 4.Mrs. M. O. Onasanya Treasurer 4.Chief Francis D. Okumagba Financial Secretary 5.Mr. Goodie M. Ibru Pub. Secretary 5.Mr. Moses Adedoyin Treasurer 6.Mr. E. O. OmoloyeFin. Secretary 6.Arc T. C. Awagu Publicity Secretary 7.Mrs. A.T.O. Akingbola Member 7.HRM Nnaemeka A. Achebe Member 8.Prof. T. A. J. Ogunbiyi Member 8.Mr C. I. Ezeh Member 9.Dr. Timothy Menakaya Member 9.Sir (Dr) Aare K. Adegbola Member 10.Dr. O. Alo Member FITC 10.Dr. Oladimeji Alo Rep of FITC 11.Mr. S. O. Alashi Member NDIC 11.Mr O. M. Sulaimon Rep of NDIC 12.Alh. Hassan Ahmed Member CBN 12.Mr. I. U. Odionye Rep of CBN

DEC 2009 – NOV. 2011 Nov. 2011 - Date

1.Chief Ferdinand N. Alabraba President 1.Olor'ogun (Dr.) Sonny F. Kuku President 2.Engr. Ashim Oyekan Vice President 2.Mrs. Foluke K. Abdulrazaq Vice President 3.Mr. Yemi Idowu Secretary 3.Mr. Yemi Idowu Secretary 4.Mrs. Foluke K. Abdulrazaq Financial Secretary 4.Mr Ikechi O. Kalu Financial Secretary 5.Mr. M.G. Tarfa Treasurer 5.Mr. M.G. Tarfa Treasurer 6.Mr. Ikchi O. Kalu Publicity Secretary 6.Mr. Sam Cookey Jr. Member 7.Mr. Sam Cookey Jr. Member 7.Chief Ope Bademosi Member 8.The Olor'ogun (Dr.) S. F. Kuku Member 8.Mr. Chima Akalezi Member 9.Mr. Vincent Okwechime Jr. Member 9.Mr. Okezie C. Amachukwu Member 10.Mr. Chima Akalezi Member CBN 10.Dr. (Mrs.) Lucy Newman Member 11.Dr. (Mrs.) Lucy Newman Member FITC 11.Mr. O.M. Sulaimon Member 12.Mr. O.M. Sulaimon Member NDIC 12. Dr. (Mrs.) Nike Akande Member 13.Mr. Nnamdi Oji Member

The Bank Director 28 B u s i n e s s S u s t a i n a b i l i t y Impact Investing as a Business Culture

Impact Investing as a Business Culture investment include the following: Impact investing refers to investments made based on the practice of assessing not only the financial a. IRIS, an acronym for Impact Reporting return on investment, but also the social and and Investment Standards, which is a environmental impacts of the investment that library of metrics and a data repository happen in the course of the operations of the used for standardizing the reporting of business and the consumption of the product or social and environmental performance service which the business creates. An impact data to enable comparisons and investor seeks to enhance social structure or benchmarking; environmental health as well as achieve financial b. PULSE, which is a performance returns. management tool used by fund managers to track and report social and The investor may take an active role mentoring or environmental performance; leading the growth of the company, similar to the c. GIIRS, an acronym for Global Impact way a venture capital firm assists in the growth of Investing Rating System, which is an an early-stage company. Impact investors follow assessment tool that produces a an investment strategy in which positive social comparable social performance rating screening criteria are an integrated component of for companies and funds. the investment process, whereas the term socially responsible investing may include negative As shown in the diagram herein, there have screening criteria in the investment decision. been notable impact investments across Africa in recent times (Source: Why Impact Investing? www.tonyelumelufoundation.com). • Problems growing faster than the solutions A notable case study of an impact investor is the • Not enough charitable and government Tony Elumelu Foundation, which has widely capital to address global challenges we invested in various countries of Africa, in areas that face cover Education, Water & Sanitation, Agriculture, • Harness the positive power of enterprise Energy and Health Care. Its first impact investment to address social and environmental was in Mtanga Farms Limited, Tanzania, where the problems internal rate of returns (IRR) was estimated at +22% and the social impacts include creating jobs While Impact Investing could be viewed as the in a depressed economy, sourcing from social impact created in the course of making a smallholder pastoralists; capacity support and profit, CSR is viewed as an umbrella term for a leasing land from smallholder farmers; seed potato variety of views and practices all of which business to provide small holder farmers with first recognise that: new seed varieties in 30 years with substantial • companies have responsibilities for their potential for increased yields, etc; while the impact on society and the natural environmental impacts included provision of environment; sound water and soil management, and zero • companies have a responsibility for the tillage cultivation. behaviour of other with whom they do business; and • business needs to manage its This is an extract of a paper relationship with wider society, whether presented by Mr. Wiebe Boer, M D o f To n y E l u m e l u for reasons of commercial viability or to Foundation at the October, add value to society. 2011 Forum of BDAN, in Lagos. Prior to joining Tony Elumelu Foundation, Mr. Boer was an The main benefit of CSR for firms is to discover Associate Director with the future business opportunities and to confer a Rockefeller Foundation's Africa competitive advantage on selected firms. Regional Office based in Nairobi, Kenya. Tools used to measure the impacts of any impact

The Bank Director 29 Directors' Development Directors' Development Some available training programmes for Nigerian bank directors

S/N Course Title Organiser Proposed Venue Proposed Dates Estimated Cost*

1. Continuous Education FITC Lagos 5-6 August 2012 N195, 000.00 Programme for Directors of Mortgage Banks

2. IFC/FITC Board Leadership FITC Lagos 6 - 9 July and N280, 000.00

Series 5 - 8 Dec. 2012 3. CBN/FITC Continuous FIT C Lago s 9 - 12 October 2012 N250,000.00 Education Programme for Directors of Banks 4. Improving Board Audit FIT C Duba i 7 – 11 May 2012 $5,200.00 Committee’s Effectiven ess 5. Executive Management Phillips Consultin g Wits Business School, 13 – 27 October 2012 Call Development Program me University if Wistwatersrand, South Africa 6. Integrated Executive Phillips Consulting Howard University 14 – 28 July and 24 Call

Leadership and Performa nce School of Business, November – 8 Management Washington DC, USA December, 2012 7. Emotional Intelligence in Poise Nigeria Lagos April 5 – 6 2012 N 145, 000.00

Business Limited

8. Executive Presence Poise Nigeria Lagos April 25 – 27 2012 N 200, 000.00 Limited

9. Directors’ MasterClass National Arizona; Charlotte; March 12 -13; April 26 Member - $4,350; (How to excel as a lead Association of Laguna Beach; Naples – 27; August 20 – 21; director, chairman and Corporate De cember 5 – 6 201 2 Non- Member - $5, committee chair; Audit best Directors, USA 35 0.00 practice; Risk Governance etc.)

10. Leadership at the Peak Centre for Creative Colorado Springs in USA Twice a month from $11, 600.00 Leadership and Davos, Switzerland January to July for 5

days (please visit www.ccl.org/lap for details of dates)

* All fees are subject to confirmation by the service provider/organiser

Great By Choice: Uncertainty, Chaos and Luck - Why Some Thrive Despite Them All Authors: Jim Collins, Morten T Hansen reviewer's comments: Jim Collins is at it again. Collins, along with co-author AMorten Hansen and a team of over 20 researchers, spent roughly nine years trying to determine why some companies thrive during chaotic, uncertain and unstable times while other companies do not. If you have read some of Collins' earlier books, the theme in "Great by Choice" certainly won't surprise you. In "Built to Last," published in 1994, Collins, co-author Jerry Porras and their research team wrote about what makes for a "visionary" company, comparing a group of objectively and subjectively defined visionary companies with comparison companies that weren't so visionary. The authors would argue that their company selections were much more objectively chosen, and I wouldn't argue much with that claim

The Bank Director 30 Directors’ Development

Elite Power and ConsensusBilderberg People in World Affairs

Authors: Ian Richardson, Andrew Kakabadse, Nada Kakabadse

ilderberg People explores the hidden mechanisms of influence at work in the Bprivate world, and personal interactions, of the transnational power elite. It is not concerned with conspiracy theories; instead it is about certain fundamental forces that shape the world in which we live. These forces, with their power to bring about transitions in emotion and preference within, and beyond, the elite community have potentially profound implications for all of us. Through exclusive interviews with attendees of the most prestigious of all informal transnational networks – Bilderberg – this book provides a unique insight into the networking habits and motivations of the world's most powerful people. Moreover, it demonstrates that elite consensus is not simply a product of collective common sense among the elite group; rather, it is a consequence of subtle power relationships within the elite circle. These relationships, which are embedded in the very fabric of elite institutions and interactions, result in a particular brand of enlightened thinking within the elite community. This exciting new volume sheds light for the first time on the critical question of who runs the world and why they run it the way they do.

Boards That Deliver Advancing Corporate Governance from Compliance to Competitive Advantage

Author: Ram Charan

ere is a book that brings the vision of truly good governance down to Hearth. Ram Charan, expert in corporate governance and best-selling author, packs this book with useful tools and techniques to take boards and their companies to a higher level of performance. Charan puts his finger on a growing problem for boards: the disconnect between directors' efforts and their results. It appears the added time and attention boards invest is not translating into better governance - that is, governance that adds value to the business. Boards That Deliver gets beyond the rhetoric of corporate governance reform. It captures the tried-and-true practices used by high-performance boards. In contrast to experts who base prescriptions on number-crunching exercises, Charan identifies the real problems that drain directors' time and suppress their best judgments and explains clearly and succinctly how boards can solve those problems. These battle-tested solutions help boards achieve what rules and regulations alone cannot to get succession right, refine a winning strategy, and design a rational CEO compensation package. Good governance requires leadership. Boards That Deliver is the no-nonsense guide for directors and CEOs who are rising to the leadership challenge to make their boards a competitive advantage.

The Bank Director 31