Academic journal article ABA Banking Journal

"Modest" Describes Pay Raises: Latest ABA Compensation Survey Tracks Exec Pay, Board Fees, and Incentives

Academic journal article ABA Banking Journal

"Modest" Describes Pay Raises: Latest ABA Compensation Survey Tracks Exec Pay, Board Fees, and Incentives

Article excerpt

During the twelve months prior to March 31, 2010, banks increased base salaries by an average of 2.5%, the lowest percentage increase in over five years, according to the newly released 2010 ABA Compensation & Benefits Survey.

More than 300 banks nationwide participated in the 37th edition of the compensation survey. A look at which institutions took part found close to half (44%) having assets between $100 and $500 million. A majority of the responding banks (62%) were stock-owned with 51% being commercial banks and 49% being savings institutions.

Covering more than 190 job titles, the survey found a wide disparity in staff compensation due to asset size, geography, number of employees, bank structure, and technology. A growing number of positions are commission-based while other jobs emphasize bonuses and incentives.

The average base salary of chief executive officers in 2009 for all survey participants was $255,000, an increase of 5.8% over the previous year. This is noticeably higher than the 0.7% change from 2007 to 2008, but not close to the change from 2006 to 2007, which was 12.3%.

Looking at other key executive positions, results saw a 7.1% rise in the average base salary of the chief operating officer and a 2.0% increase in the chief financial officer position. For the chief lending officers, base salaries decreased by 2.3% from the previous year.

Banks were also surveyed regarding their board compensation practices and policies. This year's results found that 63% compensate board members for attending committee meetings. …

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