BRENTWOOD, TENN., June 6, 2017 – Forty-eight percent of bank executives and directors say their bank does not have a successor identified to replace the chief executive officer when the top executive retires or leaves, according to Bank Director’s 2017 Compensation Survey, sponsored by Compensation Advisors, a member of Meyer-Chatfield Group. The median age for bank CEOs is 57 years.
The survey was conducted in March and April of 2017, and polled 286 independent directors and senior executives of U.S. banks. Compensation data was also collected from the proxy statements of 108 publicly traded financial institutions to provide detailed information on CEO and board compensation packages.
Twenty-nine percent of the respondents expect the CEO of their bank to retire within the next five years. Banks below $5 billion in assets are less likely to have designated a successor or identified potential successors.
Other key findings include:
- The vast majority—91 percent—believe their bank’s CEO compensation package is competitive enough to attract future CEOs or retain the current CEO. The median CEO salary for fiscal year 2016 was $366,250, with a median cash incentive of $131,697. Fifty-two percent say their CEO was awarded equity grants in FY 2016, at a median of $240,160.
- Sixty-four percent believe that their bank’s executive compensation plans are not competitive with technology companies, but 93 percent believe they’re on par with other banks, and 70 percent believe they are competitive with other companies outside the banking sector.
- Seventy-three percent believe that the board’s compensation structure is attractive enough to bring in new directors. Non-executive chairmen received a median of $50,782 in total compensation paid in FY 2016, and independent directors were paid a total median of $38,610.
- Fifty-one percent of respondents say that their board seeks to become more diverse over the next two years. One-third report that their bank has no women serving on the board, and just 13 percent have three or more female directors.
- Fifty-two percent say their board does not have a director with a background or expertise in technology.
Full survey results are available online at BankDirector.com, and will be featured in the 3rd quarter 2017 issue of Bank Director magazine.
ABOUT BANK DIRECTOR
Since 1991, Bank Director has served as a leading information resource for the directors and officers of financial institutions. Through its print and digital editions of Bank Director magazine, executive-level research, annual conferences and its 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, a member of Meyer-Chatfield Group, 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 brand officer, (615) 777-8465, [email protected]