NASHVILLE, June 25, 2012 – Bank Director magazine today released results of the 2012 Compensation Survey, sponsored by Meyer-Chatfield Compensation Advisors. The survey received responses from 549 CEOs and directors of banks throughout the country, and the data provides insight into compensation trends and challenges for 2012. There were several key findings:

• Board satisfaction with how the board is handling compensation continues to decline, with directors on the defensive when it comes to compensation practices. With an increased focus on bank CEO pay, directors “must be able to clearly defend their position, as shareholders have become more vocal because of the media coverage and watchdogs,” says JR Llewellyn, senior vice president at Meyer-Chatfield Compensation Advisors.
• Directors of smaller banks are working 33 percent more hours than reported last year, while those at the biggest banks now work less.  Flynt Gallagher, president of Meyer-Chatfield Compensation Advisors, says boards of small banks are perhaps making up for limited resources to fulfill fiduciary and oversight duties, while at the same time trying to meet shareholder expectations and ensure regulatory compliance.
• Compensation for directors will likely increase or remain the same in 2013. Gallagher says many banks are showing improvement after the last few years of asset quality issues, lower margins and lower profits.  With this improvement some banks are feeling relief and even optimism. 
• The top three compensation challenges this year are tying compensation to performance, retaining key people and succession planning. “Compensation is all about rewarding those who contribute to the success of the organization. Getting good talent and keeping it is critical to executing the strategic plan,” says Gallagher. Slightly more than half of respondents say their bank links CEO pay to a strategic plan, with 77 percent linking CEO compensation to key performance indicators.

Access to survey results is available on BankDirector.com. A thorough analysis of the survey will appear in the 3^rd quarter 2012 issue of Bank Director, available July 20, 2012.

About Meyer-Chatfield
Meyer-Chatfield is based in suburban Philadelphia, with 16 offices across the country to service clients in 44 states. Comprised of three different companies: Meyer-Chatfield Corporation, Meyer-Chatfield Compensation Advisors and Meyer-Chatfield Administrative Services, each is designed to provide clients with superior programs and excellent service.

During the last 20 years, Meyer-Chatfield has grown from a highly-respected BOLI (Bank Owned Life Insurance) specialist to a comprehensive solutions company, working with C-level executives in the banking industry and their boards to create unique earning opportunities, craft compensation programs and develop turnkey administrative solutions that work.

About Bank Director
Since 1991, Bank Director has served as a leading information resource for the directors and officers of financial institutions.  Throughout the year, Bank Director asks officers and directors of financial institutions to share their thoughts on board-specific issues like compensation, managing risk, growth, board liability and strategic planning.  Bank Director’s research and analysis provides a bank's board members with unparalleled insight and information. In addition to research, Bank Director reaches the leaders of the institutions that comprise America’s $11 trillion banking industry through its quarterly magazine, annual conferences, and its website, BankDirector.com. Bank Director is published by DirectorCorps, and headquartered in Brentwood, Tennessee.

Source: Bank Director magazine

Contact: Emily McCormick, (615) 777-8471, emccormick@bankdirector.com