Deficiency in Leadership?

Two theories emerge as to the precipitous financial and ethical decline of Citizens First National Bank, and they are as follows:

1. The former CEO Tony Sorcic, led this board by the nose, into this steep decline.

2. The board, through policy and oversight, or lack thereof, directed the bank towards the brink of financial and ethical ruin.

Your thoughts?

27 comments on “Deficiency in Leadership?

  1. Where did the bad loans come from?
    I would speculate they came along with the great leadership of Sorcic’s expansion plan. When a board allows management to run the board by picking rubber stamp directors it tilts the checks and balances.
    It looks like Sorcic cared more about growth than knowing what he was doing buying banks and adding branches. Could it be that he risked the security of the bank because he cared more about his compensation plan and bonus than the banks safety? This type of action can lead to the disaster we now are well aware of. I think in any basic management study the CEO is to answer to the board of directors. It appears maybe PNBC’s case can be studied in the future as to why you don’t defer the board of directors responsibilities to the management with it’s inherent conflicts of interest.

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