ABA Banking Journal - November/December 2017 - 44

>>> HUMAN RESOURCES
Graph 4: Salary Increases-Actual vs. Projected
Salary Increases - Officers

Salary Increases - Nonofficers

3.5%

3.5%

3.0%

3.0%

2.5%

2.5%

2.0%

2.0%

1.5%

1.5%

1.0%

1.0%
2011

2012

2013
Average

2014

2015

2016

2017

Projected

2011

2012

2013

2014

Average

2015

2016

Projected

2017

officer, chief information officer, and chief human
resources officer-have moved in the opposite
direction. These contrasting trends suggest that
boards of directors are placing greater value on
executives who play strategic roles in managing
risk and credit exposure or in growing their banks'
lending portfolios, while placing less value on retail
banking and essential administrative functions.

Source: Crowe Horwath LLP Financial Institutions Compensation and Benefits Surveys

The upward pressure on salaries is seen in the C-suite as
well. According to the survey, total compensation packages
for top bank executives have risen noticeably over the past
five years, led by a particularly sharp jump in CEO pay from
2016 to 2017.

It also is interesting to note that the effects of recent regulatory
and disclosure requirements related to top executive pay are
not readily apparent in the survey data. This is most likely due
to a lack of clarity regarding how-or even whether-some of
these requirements ultimately will be implemented.

It should be noted, however, that at least some of the one-year
increase in reported CEO pay could be attributed to changes
in the survey population from one year to the next. In this
instance, what is more revealing than the specific year-to-year
changes is the contrasting direction of the changes across
various executive positions.

As those issues are resolved in the coming months, many
banks are likely to revisit their compensation strategies,
factoring in both the changing regulatory environment and the
evolving trends disclosed by this survey and other sources.
When they do, they are likely to find that, while the war for
talent is still continuing, there are signs that strategies could be
starting to shift.

While the salaries for most top bank executives have risen
over the past five years, several positions-top retail banking

TIMOTHY J. REIMINK is a managing director and PATRICK COLE is a
senior manager at Crowe Horwath LLP, which is endorsed by ABA for
risk management consulting services.

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Table of Contents for the Digital Edition of ABA Banking Journal - November/December 2017

Chairman’s View
Upfront
Legal Briefs
Economic Outlook
Power Up Profile
Pitching In
Choices and Options Down on the Farm
Eager or Not, Every Board Needs an M&A Strategy
Adapting to Survive
More Than Just a Drink
Operations
Payments
Small Business Lending
Human Resources
ABA Compliance Center Inbox
From the States
Corporate Social Responsibility
Index of Advertisers
From the Vault
ABA Banking Journal - November/December 2017 - Intro
ABA Banking Journal - November/December 2017 - ebelly1
ABA Banking Journal - November/December 2017 - ebelly2
ABA Banking Journal - November/December 2017 - cover1
ABA Banking Journal - November/December 2017 - cover2
ABA Banking Journal - November/December 2017 - 3
ABA Banking Journal - November/December 2017 - 4
ABA Banking Journal - November/December 2017 - 5
ABA Banking Journal - November/December 2017 - 6
ABA Banking Journal - November/December 2017 - 7
ABA Banking Journal - November/December 2017 - Chairman’s View
ABA Banking Journal - November/December 2017 - 9
ABA Banking Journal - November/December 2017 - Upfront
ABA Banking Journal - November/December 2017 - 11
ABA Banking Journal - November/December 2017 - 12
ABA Banking Journal - November/December 2017 - 13
ABA Banking Journal - November/December 2017 - 14
ABA Banking Journal - November/December 2017 - 15
ABA Banking Journal - November/December 2017 - Legal Briefs
ABA Banking Journal - November/December 2017 - 17
ABA Banking Journal - November/December 2017 - Economic Outlook
ABA Banking Journal - November/December 2017 - Power Up Profile
ABA Banking Journal - November/December 2017 - Pitching In
ABA Banking Journal - November/December 2017 - 21
ABA Banking Journal - November/December 2017 - 22
ABA Banking Journal - November/December 2017 - 23
ABA Banking Journal - November/December 2017 - 24
ABA Banking Journal - November/December 2017 - 25
ABA Banking Journal - November/December 2017 - Choices and Options Down on the Farm
ABA Banking Journal - November/December 2017 - 27
ABA Banking Journal - November/December 2017 - Eager or Not, Every Board Needs an M&A Strategy
ABA Banking Journal - November/December 2017 - 29
ABA Banking Journal - November/December 2017 - Adapting to Survive
ABA Banking Journal - November/December 2017 - 31
ABA Banking Journal - November/December 2017 - 32
ABA Banking Journal - November/December 2017 - 33
ABA Banking Journal - November/December 2017 - More Than Just a Drink
ABA Banking Journal - November/December 2017 - 35
ABA Banking Journal - November/December 2017 - Operations
ABA Banking Journal - November/December 2017 - 37
ABA Banking Journal - November/December 2017 - Payments
ABA Banking Journal - November/December 2017 - 39
ABA Banking Journal - November/December 2017 - Small Business Lending
ABA Banking Journal - November/December 2017 - 41
ABA Banking Journal - November/December 2017 - Human Resources
ABA Banking Journal - November/December 2017 - 43
ABA Banking Journal - November/December 2017 - 44
ABA Banking Journal - November/December 2017 - ABA Compliance Center Inbox
ABA Banking Journal - November/December 2017 - From the States
ABA Banking Journal - November/December 2017 - 47
ABA Banking Journal - November/December 2017 - Corporate Social Responsibility
ABA Banking Journal - November/December 2017 - Index of Advertisers
ABA Banking Journal - November/December 2017 - From the Vault
ABA Banking Journal - November/December 2017 - cover3
ABA Banking Journal - November/December 2017 - cover4
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