Financial Institution Insights

Executive Compensation in the Banking Industry

Emerging Trends and Best Practices 2018

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Introduction This is Meridian’s fifth year tracking executive compensation practices at U.S. banks with assets above $10 billion. One theme remains consistent: programs continue to evolve. As we entered the 2018 year, companies invested much time and energy calculating the…

Pay Trends in the Financial Services Industry

Reprinted from the July/August 2018 issue of NACD Directorship magazine

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The financial crisis and recession may be history, but the impact these events have had on the financial services industry remains. Meridian Compensation Partners LLC, a consulting firm that serves clients on executive compensation and governance matters, has a dedicated…

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…

Keeping Your Compensation Committee On Track During the Busy Winter Season

What you should have in mind as you plan your 2016 calendar.

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The Dodd-Frank Act, regulatory guidelines on compensation risk and shareholder advisory votes on executive compensation have all contributed to an increase in the compensation committee’s responsibilities and time requirements. That pressure is compounded this time of year as committees enter…

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…

When Constituency Compensation Expectations Collide

NYSE Board Governance Series: Discussion Of Relative Performance, Peer/industry Indices, and Regulatory Issues for Financial Institutions

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Members of the banking industry–and other regulated industries–have different expectations than members of other industries when it comes to executive compensation consulting. Watch Meridian Compensation Partners’ Susan O’Donnell sit down with TK Kerstetter of the NYSE Governance Series to discuss…

Responding to Pressure

How Regulators are Changing Bank Incentive Pay

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The Federal Reserve’s influence on incentive practices at the largest banks is cascading to regional banks. Although the final Dodd-Frank Act regulations have not been released, many banks are adjusting their incentive programs to respond to regulatory pressure. A Meridian…

CEO Salaries Rise Modestly

Influence of Bank Regulators Continues on Pay Design with US Bank Executives Seeing Moderate Raises

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Meridian Compensation Partners, LLC, a leading executive compensation and corporate governance consulting firm, announced the results of their analysis of 2014 bank proxies. Senior executive total compensation (cash and equity) increased only 3.2% in 2013 at 35 mid to large…

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.…

Designing The Bank’s Incentive Plan

Why Incentives are Important To Banks’ Shareholders And How To Make The Best Plan

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Incentive plans are a critical component of a bank’s compensation program. They help drive business results, provide competitive compensation opportunity and ensure an appropriate linkage between pay and performance. For publicly-traded banks, disclosure of incentive plans also serves as an…

New Realities of Executive Compensation in the Banking Industry

The Impact of Regulatory and Shareholder Influence for 2013-2014

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Banks today are pulled in multiple directions. Shareholders and advisory firms like ISS and Glass Lewis seek strong alignment between executive pay and performance, while bank regulators prefer less leveraged, lower-risk pay programs. In the extreme, each suggests different pay…