The Vaud Cantonal Parliament is currently engaged in a significant debate regarding the governance structure of Banque cantonale vaudoise (BCV).
A key proposal from the government seeks to abolish the existing age limit of 70 for members of the Board of Directors while also reducing the maximum number of terms from four to three. This move is intended to enhance the flexibility and renewal of the board, allowing for the retention of essential skills that are increasingly scarce in the market.
The Conseil d'Etat has argued that removing the age limit will facilitate a more dynamic approach to board membership, enabling staggered departures and the retention of experienced individuals who can contribute valuable insights. The proposed changes are part of a broader effort to modernize the governance of BCV, aligning it with contemporary practices in the financial sector.
In addition to the proposed changes for the Board of Directors, the government has also suggested modifications to the age limit for the Executive Board. Currently, members are required to resign upon reaching the age of 65, a policy that contrasts with the broader employment practices within the bank, where employees can work until the age of 68 with the employer's consent.
The government aims to harmonize these age limits, allowing for a more consistent approach across the organization. The Grand Council committee has proposed a compromise solution, allowing members of the Executive Board to resign at 68, contingent upon a decision from the relevant authorities. This amendment was accepted by the deputies in a recent vote, reflecting a shift towards a more flexible retirement age for executive members.
The legislative process surrounding these amendments has been marked by contention and differing viewpoints. While the committee's middle-ground proposal for the Board of Directors initially gained traction, it ultimately failed to pass in the House, leading to the maintenance of the government's original version.
The ongoing discussions highlight the complexities involved in reforming governance structures within public financial institutions. As the Grand Council continues to deliberate on these changes, a second debate is anticipated in the coming week. The outcome of these discussions will have significant implications for the governance of BCV, potentially setting a precedent for other financial institutions in the region.
The evolving landscape of banking governance reflects broader trends in the financial sector, where flexibility and adaptability are increasingly valued in leadership roles.