Financial Institution Insights

Executive Compensation in the Banking Industry

Emerging Trends and Best Practices 2016-2017

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Introduction Bank executive compensation practices continue to evolve, as does the regulatory influence on pay programs. Eight years after the Dodd Frank Act was signed, incentive compensation rules under Section 956 of the Act remain outstanding and seem unlikely to…

Lessons From Wells Fargo: Forfeiture and Clawback Policies

The Wells Fargo & Co. sales incentive fraud scandal has further increased the scrutiny on banking industry compensation practices.

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As published in BankDirector.com By: Susan O’Donnell, Daniel Rodda| SEPTEMBER 13TH, 2017 Since 2010, banks have followed the Interagency Guidance on Sound Incentive Compensation Policies and reviewed their incentive plans to ensure they do not motivate inappropriate risk taking. However,…

Rewarding Executives for Successful Bank M&A

Aligning rewards with value enhancement will help shareholders understand the rationale behind them.

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This article originally appeared on BankDirector.com. Mergers and acquisitions (M&A) can create significant value for shareholders. Accordingly, bank executives should be rewarded when completing and integrating successful transactions. However, in today’s environment of heightened executive pay scrutiny, some approaches to…

Bank Compensation and Governance in the New Era

Banks are often under greater regulatory scrutiny than companies in other sectors, and that trend is likely to continue.

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New compensation and governance standards are impacting boards of directors in all industries, but even more so in banking, which has more regulatory requirements and is under greater scrutiny. The recent Wells Fargo & Co. $185 million settlement over alleged…

Executive Compensation in the Banking Industry

Emerging Trends and Best Practices for 2015-2016

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This is Meridian’s third annual white paper on trends impacting the banking industry (see our 2014-2015 and 2013-2014 white papers). Our paper represents data from Meridian’s review of 2015 proxies for U.S. banks with assets between approximately $10 billion and…

How Pay Drives Performance

Meridian analyzes effective pay programs and explains what companies can learn from them.

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High performing banks execute customized strategies that deliver results. They have the vision, leadership, culture and incentive programs that help to attract, motivate and retain top talent. Leaders of high performing banks articulate their strategic direction with laser focus, communicate…

Hot “Banking” Jobs: As Banking Changes, So Are the Job Titles

Banks are finding it increasingly necessary to look beyond a traditional financial services background when attracting new talent.

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Banks today must adapt to a world where “digital”, “cyber risk” and “fintech” are the new business lexicon. As the bulk of the workforce shifts from baby boomer to millennial, there is an increased need to attract talent from outside…

Bank Regulators Issue New Proposed Rule on Incentive Compensation

The new rule applies to institutions with assets of $1 billion or more, and will likely go into effect in 2019.

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The National Credit Union Administration is the first of a group of six federal bank regulators[1] to make available a joint proposed rule on incentive compensation arrangements maintained by financial institutions. Initially, these bank regulators issued a jointly proposed rule…

Executive Compensation in the Banking Industry

Emerging Trends and Best Practices for 2014-2015

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This is Meridian’s second annual white paper on trends impacting the banking industry (see “New Realities of Executive Compensation in the Banking Industry” for the 2013-2014 white paper). Our research for this paper represents data from Meridian’s review of 2015…

Balancing Act

Back-and-Forth Over Pay Leads to Small Gains, Changing Incentives

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Bank chief executives had a good but not a great year in 2013, based on an analysis of the pay packages at 35 U.S. banks with assets of $20 billion to $400 billion. Total compensation — including base salaries, incentives…

Executive Compensation for Banks

Responding to Regulatory Perspectives while Ensuring Pay for Performance

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How We Got Here: Recent Banking Compensation Regulations TARP Executive Compensation Regulations (American Recovery and Reinvestment Act of 2009) Requirements for banks who received TARP funds included: Set strict limits on incentive compensation Required mandatory clawbacks for materially inaccurate performance…

Does Your Company Stack Up?

Now is the Time to Test and Report Your Pay and Performance Relationship

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Creating alignment between pay and performance is critical in today’s environment of executive pay scrutiny. However, understanding how to assess the relationship and communicate it effectively can be challenging. There are many different methodologies and perspectives that should be considered.…