As the economy and bank profitability continue to improve, the fight for talent becomes more fierce, as bank employees realize they can easily jump between banks and compensation levels tend to increase, especially in areas where competition for talent is the most intense. The following briefs below highlight trends in the search for executives and board members.
SOCIAL MEDIA INFLUENCES RECRUITING
Social media has taken on an important role in recruiting talent. While few bank CEOs spend much time tweeting their thoughts or Instagramming their meetings, executives and board members who are being recruited do spend time looking at social media feeds to assess the bank and its reputation, says Robert Voth, who leads the Consumer & Commercial Financial Services Practice at executive recruiting and consulting firm Russell Reynolds Associates. “The weight of social media has become equivalent to network recommendations,” he says.
WOMEN STILL RARE ON BANK BOARDS
Women remain a minority on bank boards. Bank Director’s 2017 Compensation Survey found that one-third of banks have no women on their boards, and that was especially true for small banks. However, banks above $5 billion in assets are a different story. Close to 80 percent of them have two or more women on their boards, according to the survey. More than half of all banks say they plan to recruit more diverse directors from an age, gender or race perspective in the coming two years.
NO JAMIE DIMON SALARY HERE
While JPMorgan Chase & Co.’s Jamie Dimon made a total compensation package of $28 million this year, the majority of bank CEOs made substantially less. Pay varies widely based on the size of the bank. The median salary for a bank CEO with less than $250 million in assets was just $172,000 during fiscal year 2016, with a $20,000 bonus, according to Bank Director’s 2017 Compensation Survey. The median pay for a CEO of a bank with $1 billion to $5 billion in assets was $442,500 with a $190,00 bonus and $152,900 in equity grants.
YOUR EMPLOYEES WANT TO LEAVE YOU, BUT WHY?
Half of the people working in the finance industry reported a desire to leave their jobs, according to a recent survey of 300 finance industry professionals by Russell Reynolds Associates. The survey found that for people who wanted to leave, the most important reason was a desire for a more inclusive and values-driven organization.