BRENTWOOD, TENN., May 20, 2015 – Bank boards were more highly paid in 2014, report the bank executives and directors responding to Bank Director’s 2015 Compensation Survey, sponsored by consulting firm Compensation Advisors, but it was money well earned: The median hours per month that directors devote to meetings, business development, education and other board obligations rose 33 percent, to 20 hours per month.
The 2015 Compensation Survey reveals what bank chief executive officers and directors were paid in fiscal year 2014, the benefits they receive, and how bank leaders prefer to be compensated by their organizations. The survey was completed by 281 independent directors and senior executives of U.S. banks in March and April. Supplemental data on director and CEO compensation for fiscal year 2014 was collected from the proxy statements of 90 publicly traded banks.
Key findings include:
The majority of banks recently increased board pay. More than half of the survey’s participants indicate they increased director compensation in 2013 or 2014, and more than one-quarter plan an increase for 2015. However, 28 percent report their board hasn’t seen a raise in pay since at least 2010, despite the sharp increase in the average board’s workload due to a stricter regulatory environment and a challenging economy for most of that period.
The median board meeting fee for an independent director was $1,000 in FY 2014, an increase of one-third from FY 2013. The median annual retainer remained level in 2014, at $20,000.
Demand remains high for lenders. Technology/information security, risk management and regulatory compliance were also top areas for executive hires in 2014.
Full survey results, including salary and benefit data for CEOs and executives, are available online at BankDirector.com, and will be featured in the 3rd quarter 2015 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 quarterly 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
Since 2005, Compensation Advisors has served the community banking industry providing guidance on the latest compensation and hiring developments. As industry experts they convey insightful strategies and solutions to help retain, recruit and reward critical talent at all levels. 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: Emily McCormick, director of research, (615) 777-8471, [email protected]