The Bank Directors Association of Nigeria (BDAN) has highlighted the need for increased remuneration for their members in view of the role they play in the banking sector.
BDAN President, Dr. Sonny Kuku made this call in an address presented at the 2014 stakeholders’ forum organised by the association in Lagos.
According to Kuku, bank directors play challenging roles in the industry.
“Directors’ remuneration should be taken more seriously at every bank so as to also attract the right individuals for these positions of leadership.
“We all know that a bank’s board of directors plays a critical role in the successful operation of the bank. The health of every bank, and of course every organisation, depends on a strong, independent, and attentive board that adopts effective corporate governance practices,” he added.
Furthermore, he pointed out that directors have some fiduciary responsibilities to bank shareholders, depositors, regulators and communities they serve.
These duties, Kuku noted, have become very critical now more than ever.
“As you know, the boards of banks have recently been under a very close observation, and they have been told to keep up with the times in outlook, ideas and information as they will not be excused if anything should go wrong within their organisations.
“In the boardroom, directors make a lot of decisions which may make or mar the organisation. It is therefore pertinent to ensure that the right mix of individuals will be sitting in that room; people who have the requisite skills and knowledge to continually grow the bank, while ensuring that the bank/organisation is able to effectively compete domestically, and in the long run become a global institution,” he said.
According to the BDAN president, competition has always been contentious in banking, and regulators have traditionally tried to restrict competition in the industry with the aim of avoiding excessive risk-taking.
He noted that to avoid further crisis in the industry, there is the need to ensure that strong boards govern banks.
He explained that as a body of key decision makers in the industry, BDAN organises the annual forum to bring up current and relevant issues, as they affect the industry and the economy at large.
The forum brings together executive and non-executive directors of banks, officials of other financial institutions, regulatory authorities, professional bodies and all other stakeholders in the financial services sector. Thus an opportunity created to also network and share thoughts.