Each year, Bank Director releases the results of its Bank Compensation Survey, examining talent and pay trends. This year is no different; however, the results of the survey, conducted during the current pandemic, shed new light on the need for banks to hire and maintain quality talent that fits with the bank’s culture and supports the future growth of the institution. Bank Director’s 2020 Compensation Survey, sponsored by Compensation Advisors, surveyed independent directors, chief executive officers, human resources officers and other senior executives of U.S. banks to understand trends around the acquisition of talent, CEO performance and pay, and director compensation. The survey was conducted in March and April 2020, as the coronavirus forced banks to shift operations rapidly to work-from-home arrangements and adjust branch procedures.
“Ninety-two percent of respondents indicate their bank instituted or expanded remote work, and 80 percent introduced or expanded flexible scheduling in response to Covid-19,” says Emily McCormick, vice president of research at Bank Director. “In addition to adapting to remote and flexible work arrangements, more than half expanded paid leave to encourage staff to stay home if they showed symptoms of the virus.”
Respondents of the survey also indicate 81 percent have limited branch service to drive-through only, and 78 percent have limited in-person meetings to appointment only, in order to keep customers and staff safe.
“The top compensation challenge identified in this year’s survey is the same as four out of the past five years: tying compensation to performance,” says Flynt Gallagher, president of Compensation Advisors. “With the significant expansion of employees working remotely, which I believe will continue at a greater level even when the pandemic eases, measuring individual performance will be more challenging than at any time in recent years. A greater emphasis on team performance will probably emerge, with less focus on individual accomplishments as we see the workplace undergo drastic changes this year and next.”
The 2020 survey also finds that the median total CEO compensation increased in fiscal year 2019 to $649,227. CEO pay ranged from a median of $251,000 for banks under $250 million to $3.6 million for banks above $10 billion. In addition, more than 70 percent measure CEO performance against the bank’s strategic plan and corporate goals.
To access the full report that reviews additional compensation trends for the board and executive team, CEO retirement, hiring and retention challenges, and diversity and inclusion programs, visit BankDirector.com.
