Quarterly Economic Report – Q2 2025
Economic activity was little changed since the previous report, but uncertainty around international trade policy was pervasive across reports. Just five Districts saw slight growth, three Districts noted activity was relatively unchanged, and the remaining four Districts reported slight to modest declines. Non-auto consumer spending was lower overall; however, most Districts saw moderate to robust sales of vehicles and of some nondurables, generally attributed to a rush to purchase ahead of tariff-related price increases. Both leisure and business travel were down, on balance, and several Districts noted a decline in international visitors. Home sales rose somewhat, and many Districts continued to note low inventory levels. Commercial real estate (CRE) activity expanded slightly as multifamily propped up the industrial and office sectors. Loan demand was flat to modestly higher, on net. Several Districts saw a deterioration in demand for non-financial services. Transportation activity expanded modestly, on balance. Manufacturing was mixed, but two-thirds of Districts said activity was little changed or had declined. The energy sector experienced modest growth. Agricultural conditions were fairly stable across multiple Districts. Cuts to federal grants and subsidies along with declines in philanthropic donations caused gaps in services provided by many community organizations. The outlook in several Districts worsened as economic uncertainty, particularly surrounding tariffs, rose.
The Federal Reserve Beige Book, April 23, 2025
Why Financial Institutions Should Firm Up CEO Succession Plans in 2025
From BlackRock executive Mark Wiedman’s recent departure to Open AI’s Board rejecting Elon Musk’s $97B takeover, these recent high-profile stories have dominated headlines and illustrate the importance of corporate governance. Both situations underscore the power that a well-structured board holds in shaping an organization’s leadership and strategic direction. In the financial sector, where stability and trust are paramount, the importance of CEO succession planning cannot be overstated. As the global economy faces increasing uncertainty, regulatory pressures, and rapid digital transformation, financial institutions must ensure seamless leadership transitions to maintain stability and competitiveness. This article explores three key reasons why CEO succession planning should be a top priority in 2025 — especially as financial institutions navigate restructuring on leadership teams or prepare for both planned or unplanned departures:
- Navigating Economic Uncertainty. The financial sector is highly sensitive to global economic shifts, including fluctuating interest rates, inflation, and geopolitical instability. With economists predicting ongoing volatility, institutions must be prepared for leadership transitions that do not disrupt their strategic vision. A well-prepared succession plan ensures that even amid economic turbulence, financial institutions remain resilient, maintain investor confidence, and operational stability
- Addressing Regulatory Pressures. Regulatory scrutiny in the banking and finance industry is intensifying, with governments implementing stricter compliance requirements to prevent financial misconduct and enhance transparency. Institutions must ensure that their next CEO possesses a deep understanding of these regulations and is capable of steering the organization through complex compliance challenges. A proactive approach to CEO succession planning allows boards to select leaders who can navigate evolving regulatory landscapes effectively
- Ensuring Strategic Continuity. The financial industry is undergoing a technological revolution, with fintech innovations, AI-driven banking solutions, and digital asset management transforming the way institutions operate. Leadership transitions must not disrupt the momentum of these advancements. By identifying and grooming future executives who align with an institution’s long-term strategic goals, companies can ensure that digital transformation initiatives and innovation efforts continue seamlessly.
Who is Best Suited to Select the Next CEO? The responsibility of selecting a new CEO ultimately lies with the board of directors. JamesDruryPartners, a leading professional advisory firm that works with Fortune 100 companies — and specializes in corporate board governance and business leadership — maintains a unique position with in-depth insights and access to America’s corporate boards at some of the largest and most respected companies. James Drury III, Founder, CEO, and Chairman of JamesDruryPartners, underscores the meticulous nature of this process: “Behind the closed doors of global financial institutions, the board of directors is responsible and has the authority to elect the next chief executive officer. This is a meticulous process that requires directors to appoint an executive whose skills can help navigate the company’s current performance and aim to meet long-term strategic business goals. Within the board, a search committee is typically created to help identify top executives for the role and narrow down the best candidates before presenting them to the full board. Directors evaluate candidates based on their ability to navigate challenges, inspire confidence, and adapt to industry trends such as fintech and regulatory changes. Strategic alignment is equally important, as leaders must align with the institution’s values while maintaining the trust of employees, shareholders, and customers. Timing is critical, as uncertainty during transitions can impact market confidence. A seamless handover with a clear strategic vision is essential to ensuring stability and continuity.”
The Takeaway: In an era where corporate governance and leadership decisions are under intense scrutiny—whether in AI-driven enterprises like OpenAI or global financial institutions like JP Morgan or BlackRock—CEO succession planning is not just a formality, but a strategic necessity. By proactively identifying and preparing the next generation of leaders, financial institutions can navigate uncertainty, comply with regulatory requirements, and drive sustained innovation in 2025 and beyond.
“Why Financial Institutions Should Firm UP CEO Succession Plans in 2025” Globalbankingandfinance.com, 19 February 2025
Did You Know?
- Artisan recently assisted an acquisition group in its purchase of a national bank. Artisan developed the business plan, performed due diligence, and crafted the financial projections. The purchase was concluded in record time.
- Mike Elliott has joined Artisan Advisors as Managing Director of EFT Services. Contact Mike with any questions about the economics of your EFT contracts.
- Artisan’s Dan Bagus provides state-of-the-art risk assessment services to community financial institutions across the U.S. Contact Dan to discuss your institution’s risk assessment needs.
- Artisan can not only assist you with your institution’s succession planning but can also provide your company with interim executive support.