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Evaluating the CEO is a critical board responsibility, as is succession planning. But many bank boards may have gaps in their evaluation process, including the metrics used to examine the CEO’s performance. For example, just 40% of bank CEOs, senior executives and board members say their bank uses efficiency metrics to measure CEO performance, according to Bank Director’s 2025 Compensation & Talent Survey, sponsored by Chartwell Partners. A little over half say their board considers return on assets, and 47% say income growth is part of the picture. The percentages who incorporate efficiency, income growth or return on assets into…
Key Findings
Forty percent of bank leaders say their board incorporates efficiency metrics in their judgment of CEO performance, a 5 percentage point increase from a year earlier. The percentage who use income growth to gauge performance also rose 5 percentage points, to 47%. More than half use return on assets, and 42% include asset quality. One-third expect their CEO to retire or depart the bank within five years, while 38% expect their CEO will retire in five to 10 years. Twenty-nine percent do not have a long-term succession plan for C-suite executives other than the CEO, or they feel that plan…
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WRITTEN BY
Laura Alix
Director of Research
Laura Alix is the Director of Research at Bank Director, where she collaborates on strategic research for bank directors and senior executives, including Bank Director’s annual surveys. She also writes for BankDirector.com and edits online video content. Laura is particularly interested in workforce management and retention strategies, environmental, social and governance issues, and fraud. She has previously covered national and regional banks for American Banker and community banks and credit unions for Banker & Tradesman. Based in Boston, she has a bachelor’s degree from the University of Connecticut and a master’s degree from CUNY Brooklyn College.