Bank Leumi CEO: It's difficult to recruit talent for banking system

The CEO of Bank Leumi spoke about the difficulty in recruiting talent for the banking system, the severe recession in Europe and Israel's economic status.

Israelis walk past a branch of Bank Leumi in Tel Aviv (photo credit: REUTERS/GIL COHEN MAGEN)
Israelis walk past a branch of Bank Leumi in Tel Aviv
(photo credit: REUTERS/GIL COHEN MAGEN)

It is getting harder and harder to recruit fresh talent for the banking system without an owner, Bank Leumi CEO Hanan Friedman told a panel of Israel accountants last week. 

CPA Regina Unger chaired a panel where Friedman elaborated on economic challenges here. He did not mention compensation (salary, bonuses, etc.), but, in closed conversations, he said he feels that the less compensation for managers as opposed to other sectors of the economy is one main reason for the escalated brain drain from the banks.

Friedman emphasized that proper cooperation between the a company’s board chair and CEO is the key to success. 

What is the role of the chair?

The chair’s role is to supervise management, and there’s no reason why the working relationship between the chairman and the CEO should be tense.

Regarding the economic situation Friedman stated that the European recession has lasted beyond what was expected and there’s no reason for a slowdown in the US economy. 

The bright news is that statistics for the Israeli economy show  much better basic data compared to the rest of the world, such as a tight labor market, sufficient natural gas reserves, the high-tech sector and this year also the defense industries. 

He added that he doesn’t expect that Israel will experience a recession