ABA Banking Journal - November 2010 - (Page 45)

SurveyS & trendS | by michael mazur “Modest” describes pay raises Latest ABA compensation survey tracks exec pay, board fees, and incentives During the twelve months prior to Changes in base salary: 2006-2010 March 31, 2010, banks increased base salaries by an average of 2.5%, 4.40% 4.20% 4.10% the lowest percentage increase in over five years, according to the newly released 2010 ABA Compen3.30% sation & Benefits Survey. More than 300 banks nationwide 2.50% 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. 2007 2008 2009 2010 2006 Covering more than 190 job Year runs from April 1 to March 31 titles, the survey found a wide disSource: ABA 2010 Compensation & Bene ts Survey parity in staff compensation due to asset size, geography, number of employees, bank structure, and technology. A growing number of positions from 75% in the previous survey), are commission-based while other jobs emphasize bonuses and incentives. with most bonuses being awarded The average base salary of chief executive officers in 2009 for all survey based on bank performance or indiparticipants was $255,000, an increase of 5.8% over the previous year. This vidual performance. is noticeably higher than the 0.7% change from 2007 to 2008, but not close In terms of health care, 80% of to the change from 2006 to 2007, which was 12.3%. the surveyed banks’ eligible employLooking at other key executive positions, results saw a 7.1% rise in the ees were enrolled in the health plan average base salary of the chief operating officer and a 2.0% increase in the offered by their bank. Generally, chief financial officer position. For the chief lending officers, base salaries employees became eligible if they decreased by 2.3% from the previous year. worked an average of 30.7 hours per Banks were also surveyed regarding their board compensation practices week. Eight in ten banks reported and policies. This year’s results found that 63% compensate board members an increase in total plan costs in the for attending committee meetings. Close to half of the surveyed banks noted last year. that fees are based on attendance only. On average, outside board chairs To order a copy of the surearned $19,200 in board meeting fees, not counting other fees. vey, go to www.aba.com and click In order to remain competitive, surveyed banks took various steps to “Products,” then “Surveys,” or call ensure that their pay rates attract and retain employees. Forty-nine percent 1-800-BANKERS. offer bonuses while 32% had an across-the-board increase in salaries. But while 74% of respondents chose to increase base salaries in the 12 months Michael Mazur is senior manager in ABA’s prior to March 31, 2010, this is a decrease from the previous year’s 83%. Benchmarking and Survey Research Group. mmazur@aba.com Almost three quarters of surveyed banks offer bonus awards (71%, down november 2010 | ABA BANKING JOURNAL | 45 http://www.aba.com

Table of Contents for the Digital Edition of ABA Banking Journal - November 2010

ABA Banking Journal - November 2010
Contents
Chairman’s View
Editor’s Column
The Economy
Bank Notes
ABA Community Banking: Chapter 12’s Bad Fit
Pass the Aspirin
Tech Topics
Capital Squeeze
Basel III Redefines Capital
Compliance Clinic
Compliance Inbox
ABA Resources
Investment Management
Surveys & Trends
First Person

ABA Banking Journal - November 2010

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