Documente Academic
Documente Profesional
Documente Cultură
com
http://www.americanbanker.com/bankthink/is-banking-industry-on-the-verge-of-a-talent-crisis-1078217-1.html?
utm_medium=email&ET=americanbanker:e5697279:724572a:&utm_source=newsletter&utm_campaign=abla daily briefing-dec 10
2015&st=email&eid=164474d08e907358c7592aa46e0c375c
skilled talent for the top jobs. Pretty soon the big European banks will run out of former JPMorgan Chase executives to
fill candidate slots. What will they do then?
Not long ago the FDIC forecast that the pace of bank consolidation would slow once banks returned to health. They
could not have been more wrong.
Among the factors the FDIC probably miscalculated was the influence the aging workforce would have on industry
consolidation. More and more bank directors recognize their inability to confidently replace CEOs and senior
management teams who are retirement eligible. Selling the bank is the appropriate and responsible action.
Few banks are immune to these demographic trends. Ironically, the biggest banks with the most employees may be
the most vulnerable. Why? As big banks have gotten bigger and far more complex, fewer big-bank employees in line
for CEO jobs have direct training or hands-on experience managing a wide range of lending activities.
Just check out the recent leadership turmoil at Barclays, Deutsche Bank, Credit Suisse and Standard Chartered to
see what happens when such banks cannot find qualified successors for the CEO. Does anyone really believe the
biggest U.S. banks don't face the same problem?
While certainly some regulators may privately be overjoyed by the rapid pace of mergers, the question still should be
asked: "What are we missing? What could go wrong?"
The record pace of consolidation and the disappearance of 63-year-old bank CEOs may be revealing an industry on
the brink of a talent crisis. How this plays out and whether this is good or bad is yet to be seen.
Richard J. Parsons is the author of Broke: America's Banking System . He is writing a new book about long-term bank
profitability and investor returns.