BRENTWOOD, TENN., June 18, 2019 – Eighty percent of the directors and senior executives responding to Bank Director’s 2019 Compensation Survey say their bank ties the chief executive’s pay to performance indicators—representing a five point increase from 2015.
The annual survey is sponsored by Compensation Advisors.
But rather than adhering to a particular metric, most, at 59 percent, say CEO compensation is tied to the bank’s strategic plan or corporate goals.
The metrics banks prefer vary according to their ownership structure. Public banks are more apt to tie pay to performance, and favor goals established in the strategic plan (72 percent) as well as metrics such as return on assets (58 percent), return on equity (53 percent) and efficiency (40 percent).
Among private banks, net income is the preferred metric (55 percent).
The 2019 Compensation Survey was conducted in April, and captures the perspectives of more than 300 bank directors and executives, including chief executives and human resources officers. The survey also incorporates data collected from proxy statements to reveal pay trends for CEOs, directors and chairmen in fiscal year 2018.
In addition to compensation trends, the survey focuses on succession planning for the CEO and the recruitment of younger directors for bank boards.
Additional findings include:
About Bank Director
Since 1991, Bank Director has served as a leading information resource for the directors and officers of financial institutions. Through Bank Director magazine, its executive-level research, annual conferences and website, BankDirector.com, Bank Director reaches the leaders of the institutions that comprise America’s banking industry. Bank Director is headquartered in Brentwood, Tennessee.
About Compensation Advisors
Compensation Advisors has served the community banking industry providing guidance on the latest compensation and hiring developments. As benefit experts they convey insightful strategies and solutions to help retain, recruit and reward critical talent at all levels. Simply put, they find solutions others miss. Compensation Advisors works with financial institutions across the United States delivering: Executive and Director Compensation Reviews, Pay-for-Performance Incentive Plan Structures, Equity Allocation Plans, Benefit Plan Designs, Base Salary Reviews (company-wide), Risk Assessments, Regulatory Updates and Compensation Committee Governance. Visit the website at www.compensationadvisors.com.
Contact: Michelle King, chief marketing officer, (615) 777-8465, firstname.lastname@example.org
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