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The principle of rotation... in the body of [bank] directors... breaks in upon the esprit de corps so apt to prevail in permanent bodies; it gives a chance for the public eye penetrating into the sanctuary of those proceedings and practices, which the avarice of the directors may introduce for their personal emolument, and which the resentments of excluded directors, or the honesty of those duly admitted, might betray to the public; and it gives an opportunity at the end of the year, or at other periods, of correcting a choice, which on trial, proves to have been unfortunate.

Thomas Jefferson#192

BankingFinanceGovernanceCorruptionTransparency

About this quote

What does it mean?
Rotating bank directors prevents entrenched interests and allows public scrutiny of financial decisions.
In plain terms
Changing bank leaders regularly stops corruption and keeps things open.
What can you take from it?
Rotate leadership to prevent corporate entrenchment.

Where it applies

  • financial regulation
  • corporate governance
  • public policy

Putting it to work

  • implement term limits
  • demand financial transparency
  • audit bank practices

Questions to consider

  • How often should leaders rotate?
  • Who watches the watchers?

Another view

Frequent changes can disrupt long-term strategic planning.

More from Thomas Jefferson

  1. I am an enemy to all banks discounting bills or notes for anything but coin.

    Permalink to quote #191
  2. Where the press is free, and every man able to read, all is safe.

    Permalink to quote #193
  3. Certainly no nation ever before abandoned to the avarice and jugglings of private individuals to regulate according to their own interests, the quantum of circ…

    Permalink to quote #190

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