NASHVILLE, TENN., June. 17, 2025 – Today, Bank Director, the leading information resource for directors and officers of financial institutions nationwide, released the results of its 2025 Compensation & Talent Survey, sponsored by Chartwell Partners. The results indicate significant challenges for banks in preparing for executive transitions, as 30% of bank leaders lack a succession plan for C-suite executives, aside from the CEO, or feel their existing plans require improvements.

According to the survey, banks, particularly smaller and rural institutions, face challenges in growing internal talent pools and attracting external candidates. Most respondents plan to offer coaching (73%) and career development (53%) to bolster executive ranks, while 52% have considered hiring from external markets.However, the idea of recruiting senior talent from outside the banking industry remains largely untapped, with only 22% reporting that their bank has done so in the past three years. Yet, those who have pursued this strategy encountered notable success with hires in human resources, risk and compliance, business development and even CEO positions. 

Forty-four percent express openness to hiring from outside the industry, given a suitable fit. “That can make some sense, particularly because over the last three years, you’ve had a lot of aging out that’s going on in the industry, and that’s accelerating,” says Scott Petty, managing partner, financial services practice at Chartwell Partners. 

Following a pullback on diversity, equity and inclusion programs by some corporations in 2024, political pressures earlier this year, 57% of bank executives and board members say their institution lacks a formal DEI program, compared to 42% last year. More than half (53%) of those with a standing DEI program say their bank intends to continue their existing DEI practices.

“Banks have been carefully revisiting DEI practices,” says Emily McCormick, vice president of editorial & research at Bank Director. “But many respondents from larger institutions still monitor DEI-related metrics.”

Bank Director’s 2025 Compensation & Talent Survey Key Findings:

• Measuring CEO Performance: Bank executives and directors say their CEO’s performance is measured by return on assets (53%), income growth (47%), asset quality (42%) and efficiency (40%).
• Hiring Plans Level Off: Just over half indicate their bank plans to add commercial/business lending staff this year, down from 57% a year earlier. 
• Handling Mishires: Twenty-six percent say their bank has hired or promoted a candidate at the C-level who turned out to be a poor fit.
• Head Counts Plateau: Bank executives and leaders largely report that hiring in general has not been more difficult in 2024-25 than it was in previous years.
• Costs Continue to Rise: Eighty-five percent say that compensation expenses increased in 2024, a slight decline from last year.

Bank Director’s 2025 Compensation & Talent Survey provides valuable insights into hiring expectations, succession planning, executive development, and CEO and board pay. To view the full report and additional findings, please visit BankDirector.com. 

About Bank Director
Bank Director reaches the leaders of the institutions that comprise America’s banking industry. Since 1991, Bank Director has provided board-level research, peer insights and in-depth executive and board services. Built for banks, Bank Director extends into and beyond the boardroom by providing timely and relevant information through Bank Director magazine, board training services and the financial industry’s premier event, Acquire or Be Acquired. For more information, please visit BankDirector.com. 

About Chartwell Partners
Chartwell Partners is a national retained executive search and leadership advisory firm known for taking a relationship driven, consultative approach to helping clients navigate board and C-suite leadership decisions.  The Financial Services Practice, led by Scott Petty, conducts board director, CEO and senior management search assignments, and board and leadership succession advisory engagements for financial institutions across the U.S. www.chartwellpartners.com

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For more information, please contact Bank Director’s Marketing Associate, Emma McMillan-Zapf, at [email protected].