Bank CEO Comp Dips 4.2%

September 28, 2010 (PLANSPONSOR.com) – Financial institution CEOs saw a 4.2% decrease in total compensation in the past year, according to Crowe Horwath LLP's 2010 Comprehensive Financial Institution Compensation Survey.

A news release said the survey found that while total compensation decreased for many positions, median base salaries for officers increased slightly, at 2.4%, with non-officers seeing a similar increase of 2.2%. Total compensation includes base salary and discretionary pay.

Among all positions, heads of personal investment sales showed the largest decrease in median base salary at 10.7%. However, the position saw a double-digit gain of 16.4% in total compensation for the same time period. According to Timothy Reimink, a senior consultant in Crowe’s Performance group, this is a result of more activity in the stock market. Also seeing a large increase were residential mortgage loan officers at 17% in total compensation.

In response to new compensation practice requirements, 17.3% of respondents made changes to their compensation practices, while another 41% conducted reviews of their practices but didn’t find a need for a change.

Additional survey findings include:

  • Banks expect to offer personnel 2.6% salary increases in 2011, compared to forecasted increases of 2% this year.
  • Marketing directors received increases in median base salary in the past year of 9%.
  • Large increases in median base salary were also received by trust investment officers (9.2%) and personal trust officers (8.5%).

The survey, which compiled data from 340 U.S. financial institutions, is conducted annually by Crowe, a large public accounting and consulting firm.

To purchase the survey results, go to www.crowehorwath.com/compsurvey.

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