Corporate Governance and People Management: A Framework for the Banking Sector

This paper reviews the corporate governance and people management in the banking sector. It examines the concept of corporate governance and the impact it has on people management. Of the thirteen corporate governance principles given by the Basel Committee for Banking Supervision in 2015, five principles relating to board membership, board members’ role, senior management, compensation, disclosure and transparency having a direct impact on people management, are examined. The paper reviews the significance of the board of directors’ role in oversight and guidance in the functioning of banks. It focuses on the risk appetite, the need for disclosure and transparency in a bank’s operations. The emphasis is on the senior management who, through their leadership and monitoring mechanisms, pave the way for risk-assessed decision-making and stakeholder-centric approach. The strategic intent in aligning employee KPIs, and implementing employee related practices in a fair, objective and non-discriminatory manner, results in effective people management and talent retention. The paper conceptualises an indicative ‘corporate governance and people management framework’ linking the significance of corporate governance with people management. The framework details the five corporate governance principles related to people management, the main dimensions with indicators/measures for each and links the impact they have on people management. Keywords: Corporate governance, people management, senior management, compensation, talent retention, disclosure and transparency