HIS LIFE
His Governance by Stages
Stages 1 and 2
Luis Valls’ Governance at Banco Popular – First Stage
Upon his arrival at Popular, Luis Valls dismantled its board of directors, establishing a separation of functions between administrators and executives to ensure that decisions were made solely based on professional criteria. This philosophy remained unchanged throughout the five decades of his leadership. From the beginning, he aimed for a very flexible and flat organization. The idea was to professionalize decision-making, particularly the procedures for granting loans. Additionally, during these early years, he gathered capital around him, revived the legal figure of the Shareholders’ Syndicate, and initiated significant national and international expansion. Simultaneously and deliberately, he influenced Franco’s regime’s economic opening and was the driving force behind the technocratic government. All this was achieved quietly, from the background, and he gained significant political influence with this approach.
Luis Valls’ Governance at Banco Popular – Second Stage
In the mid-1960s, Rafael Termes was appointed CEO of Popular. They always had a very cordial relationship, although they defended different and legitimate ways of conducting the bank’s activities. Valls saw the future in retail banking, with small and medium-sized enterprises and individual savers. Within a period of adjustment, Luis Valls was appointed chairman in 1972. After four years of good relations—albeit with increasing disagreements—Termes was appointed chairman of the Spanish Banking Association (AEB) and left Popular. On July 20 of that same year, Javier Valls and Manuel Fanjul were appointed first and second vice presidents at the Bank’s Board of Directors. Javier Valls held this position until 1989, when he was promoted to the presidency, sharing it with his brother Luis.
What would happen in the third stage? Go to: Returning to his leadership by stages – Stage 3 – Stages 4 and 5
