The Structural Challenges Facing Community Bank Board Recruitment
Community banks know diversity in the boardroom matters, but many still struggle to move beyond the same narrow recruiting networks. In this episode, Amber Buker, Chief Research Officer at Travillian, sits down with Jennifer Docherty, Senior FIG & Capital Markets Strategist at Performance Trust Capital Partners and Co-Founder, Founding Director and Chief Executive Officer of Bank on Women, to explore why boardrooms remain so homogenous and what banks can do about it.
Jenn breaks down the structural dynamics that shape how directors are recruited, the research behind why reaching a “critical mass” of women on a board improves performance, and how banks can build stronger succession pipelines. The conversation also dives into the role of sponsorship, leadership development, and how Bank on Women is helping community banks expand their candidate pool and rethink board succession.
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00:00: Introduction: Why Women on Bank Boards Matter
Amber opens the episode noting that March is Women’s History Month and introducing a conversation with Jenn focused on practical ways banks can recruit more women into leadership.
01:26: The Critical Mass and Performance Benefits
Positive impacts on bank performance, including reduced regulatory issues and consent orders, are directly tied to gender parity. However, these benefits only begin to accrue significantly once a board reaches a “critical mass,” which is mathematically defined as one-third representation. Jenn notes that until this threshold is met, a lone woman is often viewed as a “token” who must represent 50% of the population, a burden that prevents her from fully performing as a board member.
02:37: Performance Gains During Economic Stress
A longitudinal study of banks over 17 years found that the benefits of a diverse board are most pronounced during periods of volatility. During the great financial crisis, banks with a critical mass of women significantly outperformed those without. This suggests that having leaders who see the world differently is a vital component of risk management when the industry is under pressure.
06:33: Modernizing Board Governance and Succession
Many community banks are “saddled” with boards that were constructive 25 years ago but are ill-suited for the future of banking. Effective governance requires moving away from accidental succession — relying on “Joe” to retire and asking who he knows at the golf club — and moving toward intentional gap analysis. Banks must proactively identify missing skill sets, such as cybersecurity or digital innovation, to provide a strategic impetus for expanding their recruitment circles.
11:12: Structural Barriers in the Executive Pipeline
While banking is majority female at lower levels, representation drops precipitously as you move toward the C-suite. Historically, leadership roles have been gated by the requirement of running a P&L or being a lender, yet men are twice as likely to be recommended for these specific roles. Jenn argues that the modern CEO needs a different toolkit, focusing on the ability to innovate and navigate digital transformations rather than strictly following the traditional lending path.
14:51: The Confidence Gap and the “Broken Rung”
Research indicates a stark difference in how men and women perceive their own performance; in studies, men often overestimate their results while women underestimate them. This “confidence gap” impacts the career ladder early on, as men are often promoted based on what they can achieve, while women are promoted based on what they have achieved. This creates a “broken first rung” where women miss out on early leadership opportunities despite asking for promotions at the same rate as men.
17:01: The Power of Sponsorship over Mentorship
Mentorship involves giving advice, but sponsorship is defined by what leaders say when a person is not in the room. Jenn shares a personal turning point where a senior colleague lent her his “political capital” by telling a boardroom to speak to her as the expert rather than him. This type of active advocacy is essential for retaining top talent and ensuring that the leadership pipeline does not dry up.
20:19: The Mission of Bank on Women
Born from a simple spreadsheet of 50 qualified women, Bank on Women has evolved into an educational nonprofit that helps boards understand the “how” of diversification. The organization maintains a database of candidates categorized by high-demand skills like audit expertise and technology. By offering peer groups and tailored gap analyses, Jenn helps banks move beyond their local circles to find the best possible leadership for their specific market.
26:07: How to Engage and Take Action
The Bank on Women website is designed to serve three distinct groups: women qualified for board service, bank CEOs or chairs seeking governance help, and female leaders interested in peer networking. For those looking to evolve their board, the process often starts with a simple conversation or a formal gap analysis to identify the exact expertise the bank needs to thrive in a modern environment.
27:09: Impact and Motivation
Reflecting on her career path from law school to strategic advisory, Jenn shares that her work is driven by a desire to have a tangible impact and leave the banking industry better than she found it. By leveraging her accumulated political capital and relationships, she aims to create a more inclusive and high-performing future for the next generation of leaders.
