ABA Banking Journal - January/February 2016 - (Page 41)

>>> HUMAN RESOURCES 2015 FINANCIAL INSTITUTIONS COMPENSATION SURVEY: Supply and Demand Drives Compensation Strategies BY JASON V. BOMERS, PATRICK J. COLE AND TIMOTHY J. REIMINK T he financial services industry has weathered tumultuous times in recent years-a credit crisis, devalued portfolios, an unprecedented wave of consolidations and takeovers and a dramatically expanded regulatory environment. At the same time, fastchanging technology has transformed the way banks and customers interact. These events inevitably affect the compensation of bank employees, managers, and executives- changes that are reflected in Crowe Horwath's annual Financial Institutions Compensation Survey. The year-to-year changes in the average compensation for various job positions offer clear evidence of recent trends in the financial institutions industry. Out of these, four broad groups-credit and lending positions, personal investment services positions, retail banking positions and chief financial officers- offer particularly instructive insights. Portfolio cleanup winds down trends seen here would seem to suggest that banks consider the bulk of the portfolio clean-up work is now behind them, as the industry's strategic emphasis appears to be shifting back toward growing healthy loan portfolios. A comparison of compensation trends for various positions in lending and credit operations demonstrates how financial institutions have adjusted their priorities as they worked their way through the credit crisis and recovery. The most noticeable trend is the drop in average compensation for chief credit officers over the past year-a 4.65 percent drop in average base salary and a 6.68 percent drop in average total compensation. Also illustrative: the sizable one-year jump in average base salary for residential mortgage loan officers. Commercial loan officers also saw healthy increases in average compensation over the past year. These trends are even more pronounced in lower-level lending positions, as loan officers and loan processors have seen their average compensation climb, while their credit counterparts, such as workout specialists and credit analysts, have experienced less demand. The TABLE 1-COMPENSATION TRENDS IN SELECTED LENDING AND CREDIT POSITIONS Average 2015 One-Year Change, Five-Year Change, Position Base Salary 2014-2015 2010-2015 Chief Lending Officer $153,318 0.02% 13.16% Chief Credit Officer $149,678 -4.65% 16.87% Commercial Loan Officer III $115,614 6.59% 7.92% Investment services still a growth area Another area many institutions have targeted as a growth opportunity is the provision of investment services for their clients. This strategy is reflected in the compensation trends for positions such as licensed investment representatives and the head of personal investment sales (Table 2 on the next page). Average compensation for licensed investment representatives is up substantially from the levels that were typical at the depths of the recession five years ago. The slight 2014-2015 drop in average total compensation can be attributed in part to general market conditions, since a very large portion of investment representatives' Average 2015 Total Comp. $172,422 $162,187 $123,796 One-Year Change, 2014-2015 1.71% -6.68% 5.80% Five-Year Change, 2010-2015 17.55% 21.01% 9.45% Commercial Loan Officer II $95,913 10.67% 19.67% $101,519 12.28% 20.59% Commercial Loan Processor Residential Mortgage Loan Officer II Residential Mortgage Loan Processor $42,923 $57,502 $39,594 12.37% 52.75% 11.05% 16.51% 15.27% 13.54% $43,860 $67,870 $40,773 13.42% 16.66% 12.31% 17.26% 9.69% 13.79% Loan Workout/Special Assets Officer $87,894 -6.59% 2.39% $88,995 -10.04% 1.16% Credit Analyst I $44,643 -8.80% 2.09% $45,730 -8.67% 2.86% aba.com/BankingJournal | ABA BANKING JOURNAL 41 http://www.aba.com/BankingJournal

Table of Contents for the Digital Edition of ABA Banking Journal - January/February 2016

President's View
Picture This
Economic Outlook
Community Engagement
Cover Story: Train To Your Advantage
Filling The Trust Gap
Banking In The Sweet Spot
Safe Banking, Savvy Seniors
Human Resources
Agricultural Banking
Board Matters
ABA Compliance Center Inbox
Legal Briefs
From The States
Corporate Social Responsibility
Index of Advertisers

ABA Banking Journal - January/February 2016