Corporate Governance Practices at Equity Bank Kenya

Abstract

Corporate governance being a management structure of a firm endeavors to bring out the strategy by which companies are directed and controlled. It involves a set of relationships between the company's management and the Board of Directors and other stakeholders. The objective of this study was to establish the corporate governance practices at Equity Bank. The study used a case study of Equity Bank Kenya Ltd. The study collected primary data from the management team and board members through personal interviews. Twelve managers responded to the study. Content analysis was used to analyze the data collected. The respondents joined the Bank either as a manager or a board member within the last four years followed by those who had joined they joined the Bank as a manager or Board member in more than last five years. The Board of Directors met as need arose to discuss on ways of improving the performance of the Bank. At the Board meetings. the directors discussed the need for the new appointment of the Bank ensured it collected enough information about the job applicants by arranging several interview sessions before making an employment offer to the best qualified candidate. corporate governance began with engaged, capable, and experienced directors and senior management, a coherent strategy and business plan. and clear lines of responsibility and accountability. For the customers. the board considered their banking and general financial conditions and needs in its decision making while for suppliers, the customer considered them by seeking to provide a better position and environment where it creates strong link with suppliers for future benefits. The study concluded that the process of decision making in the Bank was inclusive where all employees were offered a chance to participate in the decision making through departmental meeting before escalating the resolutions to senior management and finally to the board for ratification. The study further concluded that the appointment of senior management and board members was done systematically at the Bank after an evaluation of skills gap where the Bank evaluated the skills available in comparison.to the skills required before starting the recruitment process.