ACB: Press Releases

Contact:	Robert Schmermund (202) 857-3104 Jim Eberle (202) 857-3145	Jim Eberle (202) 857-3145 (work) (703) 893-2593 (home) [email protected]	For Immediate Release October 16, 2001 #01-68
E-mail: [email protected]

ACB SURVEY FINDS INCREASES IN COMPENSATION AT COMMUNITY BANKS

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WASHINGTON, D.C. — The base compensation for community bank chief executives averaged $169,959 as of March 31, 2001, an increase of about 3 percent over the previous year’s $164,648, according to America’s Community Bankers’ 2001 Compensation Survey.

Overall, bank employee staff salaries increased by an average of 4 percent in the year ended March 31, 2001, the same annual average increase reflected in the survey for the past five years.

Among CEOs, average base compensation ranged from $57,025 for institutions with less than $25 million in assets to $351,388 for institutions with more than $1 billion in assets. The average base compensation for CEOs in metropolitan areas was $190,620, up 5 percent over the previous year. Stock institution CEOs averaged base compensation of $190,343, 2.8 percent above the 2000 survey. Among mutual institutions, the average was $140,466, a 3.5 percent increase. The difference between stock and mutual salaries reflects, in part, average asset size differences.

For the first time, the survey includes CEO salaries at mutual holding companies and compares salaries of commercial bank and savings institution CEOs. The average base salary was $191,293 for CEOs of MHCs, $183,196 at commercial banks and $166,823 at savings institutions.

The average profit-sharing/bonus payment for CEOs at the end of 2000 (the latest available) was $46,390, an increase of about 4.5 percent over the previous year’s $44,682. This component of total compensation for senior executives has become increasingly tied to bank performance and profitability over the past few years, according to Steve Davidson, ACB senior financial economist and author of a commentary on the survey’s findings.

“Profit sharing/bonus compensation tends to be more sensitive to bank performance than salary,” said Davidson.

For other community bank employees, Davidson said, “There is a steady trend to link salary increases to individual performance. Among those contemplating an increase, a higher percentage will base an increase in compensation on either individual or bank performance. Each year, a lower percentage of respondents provide across-the-board increases.”

Outside directors’ compensation in 2000 averaged $13,506, a slight decline from 1999. The range in 2000 was $4,160 at institutions with less than $25 million in assets to $24,710 at institutions with more than $1 billion in assets.

The ACB 2001 Compensation Survey is the most comprehensive source of data and policies on compensation for community banks. The report was compiled from 458 banks participating in the 2001 survey. The survey contains a wider range of job descriptions and geographic scope than any other publication.

This edition continues to add data and questions as the industry evolves. The survey includes compensation information on 166 community bank positions. This year, 16 new positions were added, mainly information technology functions and financial product development and marketing positions. The survey is presented as national information; in six peer groups; eight asset-size categories; nine geographic regions; a combined group of 52 metropolitan areas; type of ownership; and type of charter.

This year’s survey includes three special white papers on compensation issues, including recruiting, hiring and retaining employees; retirement benefits for key executives; and executive compensation plans.

The survey is available as a 461-page manual or on a searchable CD-ROM, or as a discounted combined package. To order, visit www.AmericasCommunityBankers.com or call (888) 872-0568.

America’s Community Bankers is the national trade association committed to shaping the future of banking by being the innovative industry leader strengthening the competitive position of community banks. To learn more about ACB, visit www.AmericasCommunityBankers.com.

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