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The headquarters of the Federal Reserve Bank of Boston. Photo Courtesy of Fox-orian / CC BY-SA 3.0
The committee tasked with finding a new president for the Boston Federal Reserve Bank has made slight adjustments to the job description, including expanding its emphasis on a leader who will champion diversity, equity and inclusion.
Nearly two months into the search, the committee made the adjustments in response to input received about the next president, the committee said in a report summarizing the process so far. A commitment to diversity, equity and inclusion has been a common requirement for stakeholders who have provided input on the characteristics expected of the next president.
The Boston Fed launched the search for its next president and CEO in October. The search comes after the Boston Fed’s former president, Eric Rosengren, resigned in September, citing a worsening, longstanding kidney condition. Rosengren had been slated to retire in June 2022 when he reached age 65, the mandatory retirement for federal reserve bank presidents. Rosengren had been president for 14 years and spent 35 years at the Boston Fed.
The retirement also came after news reports showed that Rosengren and then-Dallas Fed president Robert Kaplan had engaged in stock trading during 2020 that raised ethics questions.
Brown University President Christina Paxson is leading the search committee, which consists of five other members of the Boston Fed’s board of directors. By law, directors who are affiliated with regulated banks cannot participate in the selection of the next president. The Federal Reserve board of governors must approve the selection.
The committee has reached out to collect information from stakeholders and constituencies, the report said, and input was gathered through meetings, conversations, letters and emails. A dedicated email inbox for input will remain open as the search continues, the committee said.
“Strong outreach reflects our commitment to a rigorous, broad, and inclusive search – which is vital for an influential position that serves the public,” the committee said in the report released on Thursday. “The Search Committee is committed to ensuring the Bank’s work continues to be characterized by excellence in nonpartisan service to the public. And we are carefully considering all input offered.”
The committee is being assisted by Spencer Stuart, an executive search consulting firm. Spencer Stuart, the committee and Boston Fed leadership have met with the bank’s three advisory councils to receive input on characteristics that these advisers want to see in the next president. The committees are the New England Community Development Advisory Council, the New England Advisory Council and the External Diversity Advisory Council.
Bank employees were also polled by the committee.
“Employees emphasized the importance of a deep commitment to all facets of the organization’s functional and leadership responsibilities; a broad understanding of the subject matter central to the Bank’s work and specialties; comprehensive and enthusiastic embrace of diversity, equity, inclusion; being approachable and listening well to constituents; openness to growth and innovation; relationship‐building skills; integrity; and credibility in analysis and policymaking,” the report said.
Bank employees also emphasized that they want a president who could “drive innovation, foster culture, and lead an organization that is making technological advances within financial services.”
In response to the input from various stakeholders, the committee said it made three adjustments to the job description:
- Expanding the emphasis on championing diversity, equity, and inclusion as an element of leading within the role.
- Sharpening the emphasis on policymaking leadership, credibility, influence and contributions.
- Enhancing the emphasis on community engagement and relationship‐building, information gathering and interaction with constituencies and stakeholders.
The updated job description also clarifies that the candidate must be a U.S. citizen in order to obtain top secret-level security clearance, and the new president will be able to request a medical or religious accommodation to the COVID-19 vaccine.
