Answer:
You certainly should be making recommendations and the board should consider them. That is part of your job, but they also have a job and that is to take action. If they disagree with your recommendations, they are free to do so. They understand the financial situation of your bank better than you do, as well as the future plans.
Say you recommend $10,000 in new security equipment in your Main Street branch. It was recently robbed, and this could help deter crime there in the future. You may make a recommendation, but the board may be considering closing that branch. A security expense may not be worthwhile.
Your board should understand that your recommendations, noted in your annual reports and oral presentations to the board may be discoverable. If an employee or customer was injured and sued the bank, their adverse decisions may reveal that the harm which came to someone could have been avoided. They should certainly have sound reasons for their actions, as should you.
First published on BankersOnline.com 5/24/10
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