It is often said women should have “a seat” at the table. The board of directors and executive leadership at Five Star Bank believe women should have many seats, from the C-Suite to the board room.
In this Q&A, three women on Five Star Bank’s board of directors share their perspectives on how diversity impacts business success and offer advice on women seeking board positions. They are: Shannon Deary-Bell, Five Star Bank director and president and CEO of Nor-Cal Beverage Company; Donna Lucas, Five Star Bank director and president and CEO of Lucas Public Affairs; and Leigh White, Five Star Bank director and chief revenue officer at Vydiant, Inc.
Why is diversity of thought important at the board level?
Deary-Bell: “A board that is diverse in thought brings fresh perspectives and approaches to the challenges businesses face. Also, a variety of skillsets creates a healthy balance in making key decisions.”
Lucas: “Diversity is so important; it’s critical in every room, but especially in a board room. Diverse voices around the table allow for robust problem-solving and help create a successful business strategy that reflects the diversity of the customers we serve.”
White: “All boards have finance, accounting and legal professionals as their cornerstone, but our world is changing quickly and ESG is a factor. People with a wide array of expertise including marketing, innovation, human resources and diversity, equity and inclusion, become more critical to the conversation.”
What is your view of a legislated approach to board diversity?
White: “It’s disappointing states have had to mandate diversity on corporate boards as a legal requirement. This should be happening organically. Shareholder and investor sentiment are moving the needle toward more action and compliance, and institutional investors are pushing for board diversity as well. In addition to boosting gender and racial diversity, this may also be an opportunity to diversify in terms of professional backgrounds and skills which align with the voices of diverse clients, customers and other stakeholders.”
Lucas: “As a businessperson, I generally do not like mandates. However, I do think diverse boards will help business and corporate America. In the long run, this was such a good thing.”
What cultural changes do you believe are yet to happen in the corporate world?
Lucas: “We’ve come a long way, but I think the biggest cultural change is that corporate leaders and shareholders are now recognizing that a strong diverse team is also good for business. Studies have shown that diverse boards and executive teams are also some of the most profitable businesses. A McKinsey study found that the most diverse companies are more likely to outperform less diverse peers on profitability and are, in fact, 43% more likely to experience higher profits.”
White: “There is much more transparency and much more acceptance to collaborate with others outside our normal sphere of influence and this will continue to accelerate. Culture and environment are at the top of everyone’s list whether you are a CEO or a job-seeker looking for a position. An adaptive culture provides a foundation for innovation and business transformation.”
There has been a perception that there are not enough viable female candidates for board positions. What are your thoughts?
Lucas: “I don’t agree with that. In order to find viable female candidates for board positions, you just need to look in the right places. Organizations should take the time to research and recruit future board members. Reaching out to leadership organizations for diverse candidates is also helpful.”
Deary-Bell: “It is my firm belief that there are plenty of qualified women in business today and it is imperative that CEOs and nominating committees that are looking to fill an executive position or board seat open up their approach and search to find them.”
What is your advice to women who want to move up both within the executive level and to the board?
Deary-Bell: “It all starts with talent and work ethic, and perhaps, doing things that may be outside of one’s comfort zone. By this I mean possibly taking on a new role within their company. Learning and constantly setting new goals or heights within yourself will result in achievements and or interests you never knew you had.”
White: “Relationships are the key and take a while to cultivate. Letting business leaders know where your interests lie, and letting your connections know you have an ambition to join a board, helps. Word of mouth, referrals and timing are factors. Not everyone wants to sit on a board – it is a big lift and huge responsibility. With this in mind, let it be known within your circle of influence. Also, continue to grow your skillsets. In my case, I am working toward an MBA to create more value.”
Lucas: “Women who want to move up within the executive level/to the board should get involved with leadership groups. You need to find a way to serve. This is another example of the importance of doing your research. Educate yourself on the required essential qualities in exceptional board members and then actively seek opportunities to grow in these areas. And if you’re on a board, do as much training and board education as you need. An informed board member is an effective board member.”
What skill sets are required to be an effective board member?
Deary-Bell: “An effective board member should have the ability to listen and be a quick learner. You should be confident enough to communicate or voice your opinion even if it might conflict with the majority opinion. Continued education is always needed to stay up on current laws, regulations and/or expertise that pertain to the board you are serving.”
White: “It is important to have a strategic mindset and critical thinking skills in addition to financial skills. It is also important to have the confidence to speak up and challenge the board to consider other perspectives. Being an effective board member requires looking for new ways to innovate while addressing market concerns related to ESG and climate change which affect our clients and shareholders.”
Donna Lucas: “It is so important to be curious and to ask questions. Never be afraid to speak up. You are in the room for a reason – use your voice.”
Shannon Deary-Bell, Donna Lucas and Leigh White will participate on the panel, “Women Bank Directors: Board Service in the New Millennium,” at Western Bankers’ Women in Banking Forum in Huntington Beach, California, in May.
Five Star Bank is a publicly traded (Nasdaq: FSBC) California-based community business bank committed to Environmental, Social and Governance (ESG) initiatives and a robust Diversity, Equity and Inclusion program. Recently, Five Star ranked among S&P Global Market Intelligence’s Top 100 Performing Community Business Banks in the nation for banks with assets below $3 billion.
