Point of View

Should Bank CEOs Do as Poorly as Bank Investors?

It was a bad year for banking. But was it a bad year for bank CEOs?  Let’s look at the numbers. Compensation committees had to make decisions this spring about incentive pay tied to performance in 2023. Rising interest rates led to lower profitability for the industry overall. Theoretically, many banks should become more profitable as interest rates rise, because they can charge more for loans. However, many banks loaded up on bonds when interest rates were low, causing high levels of unrealized losses in their bond portfolios when rates rose. Rising rates meant deposit costs often outstripped higher yields…

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WRITTEN BY

Naomi Snyder

Editor-in-Chief

Editor-in-Chief Naomi Snyder is in charge of the editorial coverage at Bank Director. She oversees the magazine and the editorial team’s efforts on the Bank Director website, newsletter and special projects. She has more than two decades of experience in business journalism and spent 15 years as a newspaper reporter. She has a master’s degree in journalism from the University of Illinois and a bachelor’s degree from the University of Michigan.