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Board members and officers of banks nationwide were paid more in 2014 than in past years, according to a new survey, but that money came with a caveat: more work.
The median board meeting fee for an independent bank director was $1,000 in fiscal year 2014, according to Bank Director's 2015 Compensation Survey. That's an increase of one-third from fiscal 2013. The median hours per month directors devoted to board work also increased 33%, to 20 hours a month in 2014.
Brentwood, Tenn.-based Bank Director is a data analysis firm for directors of financial institutions. The report, with data from Compensation Advisors, is based on a survey of 281 independent directors and senior executives of U.S. banks, in addition to proxy statements from 90 publicly traded banks.
A main reason cited for the increased workload is the tighter regulatory environment.
On payment, not all banks are paying directors more money. More than one-fourth of respondents, 28%, report their board hasn't seen a pay raise since at least 2010. On the flip side, at least one-quarter of respondents say their bank will increase director pay in 2015, the report states.
While director pay, on average, is up, banks have shifted the method of payment from meeting fees to awarding an annual retainer. The percentage of directors who receive board meeting fees declined 7 points from the 2012 survey, to 77%. And directors who receive annual retainers grew 17% in the same time frame, to 61%. The median annual retainer remained level in 2014, at $20,000.
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