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#2094489 - 08/22/16 03:49 PM Qualifications for Board Seat
Joanna Offline
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Joined: Sep 2013
Posts: 102
Is there regulation on how many shares or value of bank stock a director is required to own to qualify for a board seat? Any direction would be appreciated!

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#2094490 - 08/22/16 03:52 PM Re: Qualifications for Board Seat Joanna
MScarn6942 Offline
Platinum Poster
Joined: Aug 2015
Posts: 756
Land Lacking in Lakes, IL
I don't believe there is a requirement. Not all of our board members own stock and nobody has ever said anything about it. That being said, I think ownership can require it if they want to.
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#2094500 - 08/22/16 04:01 PM Re: Qualifications for Board Seat Joanna
Joanna Offline
100 Club
Joined: Sep 2013
Posts: 102
I couldn't find any regulation and have never heard of it in my whole three years as a compliance officer...however, our CEO believes there is a regulation. So trying to find something.

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#2094505 - 08/22/16 04:07 PM Re: Qualifications for Board Seat Joanna
HappyGilmore Offline
10K Club
Joined: Jun 2004
Posts: 19,602
Pulling people out of the ditc...
https://www.federalreserve.gov/boarddocs/supmanual/cbem/5000.pdf

see nothing here requiring stock ownership...of course, my thoughts would be why would you want a board member with no ownership stake being on the board?
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#2094510 - 08/22/16 04:13 PM Re: Qualifications for Board Seat Joanna
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 80,325
Galveston, TX
If you are a State bank, there are State law requirements in some States.
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#2094522 - 08/22/16 04:33 PM Re: Qualifications for Board Seat Joanna
Queen Tut Offline
Junior Member
Joined: Aug 2015
Posts: 41
If you are a national bank there is a requirement - refer to Appendix A (pg 85) of the Director's Book: Role of Directors for National Banks and Federal Savings Associations
OCC

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#2094548 - 08/22/16 05:40 PM Re: Qualifications for Board Seat Queen Tut
Elwood P. Dowd Offline
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Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
The term you are looking for is "qualifying shares." Some people believe that directors should have some real skin in the game...
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