Bank Director's 2025 Governance Best Practices Survey: Diverging on Strategy

Bank Director's annual survey focuses on how boards structure discussions and decision-making, strengthen their composition and set strategy.

NASHVILLE, Tenn., July 29, 2025 /PRNewswire/ -- Today, Bank Director, the leading information resource for directors and officers of financial institutions nationwide, released the results of its 2025 Governance Best Practices Survey, sponsored by the law firm Bradley Arant Boult Cummings LLP. The survey underscores the varying levels of board involvement in strategic planning, from collaborative to more hands-off approaches.

According to the survey, 80% of directors and CEOs indicate that reviewing the strategic plan is an annual practice for their boards. However, the depth of board engagement varies, with 17% actively collaborating with management and 3% taking a more passive role. More than half (59%) say their boards determine the bank's risk appetite but delegate strategic plan development to the executive team.

Survey findings suggest room for more board involvement, with 39% of participants expressing that directors could better influence the bank's strategic direction. Robert Maddox, a partner at Bradley, underscores the need for active board participation: "Directors should ask questions, especially when executives propose loosening risk limits for growth. Knowing where our risk tolerances lie is crucial in today's environment."

Engagement in the bank's strategic direction requires skilled directors, and the survey uncovers an array of backgrounds and expertise represented in bank boardrooms. "We encourage boards, especially governance/nominating committees, to regularly discuss the skills and backgrounds the board needs to oversee and engage in the bank's future direction," says Emily McCormick, vice president of editorial and research at Bank Director. "And then, determine how you'll recruit that expertise."

Bank Director's 2025 Governance Best Practices Survey Key Findings:

• Setting Expectations: While boards commonly set expectations for members to attend meetings (95%), participate in training (85%) and interact respectfully with other directors (81%), fewer establish standards for engaging with regulators (36%), shareholders (35%), employees (27%) or clients (20%).
• Virtual Deliberations: Nearly three-quarters report monthly full-board meetings, and a majority (85%) allow virtual attendance. Meetings typically last four hours.
• Lengthy Board Packets: Sixty-one percent receive materials more than four days before meetings, spending a median four hours on review. Packets vary by institution size, spanning 75 to 400 pages.
• Leading the Board: Most boards (60%) are led by an independent chair; 37% rate them as "somewhat effective" — and 8% as "somewhat ineffective" — in facilitating discussions. Forty-six percent believe the chair is somewhat effective in setting the agenda.
• New Perspectives: Fifty-seven percent discuss board refreshment annually. More than 80% have added new directors since January 2022, while 18% have not.

Bank Director's 2025 Governance Best Practices Survey provides valuable insights into the fundamentals of board performance, including what's discussed in board meetings, the director's role in strategic planning, the use of board assessments and the expertise reflected by directors. To view the full report and additional findings, please visit BankDirector.com.

About Bank Director
Bank Director reaches the leaders of the institutions that comprise America's banking industry. Since 1991, Bank Director has provided board-level research, peer insights and in-depth executive and board services. Built for banks, Bank Director extends into and beyond the boardroom by providing timely and relevant information through Bank Director magazine, board training services and the financial industry's premier event, Acquire or Be Acquired. For more information, please visit BankDirector.com.

About Bradley Arant Boult Cummings LLP
Bradley's Banking and Financial Services Practice Group counsels finance clients on their unique and particularly complex legal needs, whether these pertain to litigation, regulations and compliance or other corporate matters. Representing a broad range of banks, lenders and financial services institutions across the U.S., Bradley provides experienced, proactive guidance on a broad spectrum of legal issues, including regulatory compliance, governmental investigations, risk assessments, audit and exam support, business transactions, litigation and multi-state settlements. Bradley's Banking and Financial Services team is proud to be nationally ranked by Chambers USA for Financial Services Regulation: Consumer Finance (Compliance) and Financial Services Regulation: Consumer Finance (Enforcement and Investigations). www.bradley.com

For more information, please contact Bank Director's Marketing Associate, Emma McMillan-Zapf, at [email protected].

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SOURCE Bank Director