Financial Institution Insights

Executive Compensation in the Banking Industry

Emerging Trends and Best Practices 2016-2017

Posted by and on

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…

Rewarding Executives for Successful Bank M&A

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

Posted by and on

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.

Posted by on

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

Posted by and on

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.

Posted by and on

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.

Posted by and on

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…

Are Your Retirement Vesting Provisions Motivating the Wrong Behaviors?

Analyzing retirement vesting provisions and ensuring they incentivize the right behaviors.

Posted by and on

As more executives near retirement age, many banks are realizing their equity vesting provisions may be motivating unintended behaviors. Do your bank’s retirement provisions encourage executives to: Provide advance notice of retirement to facilitate planned succession? Assist in their transition?…

Compensation and Governance Committees: Sharing the Hot Seat in 2016

Compensation committees have seen increased scrutiny the past several years, and governance committees will likely see a similar focus in 2016.

Posted by on

The compensation committee has been on the hot seat for several years. Outrage regarding executive pay and its perceived role in the financial crisis has put the spotlight on the board members who serve on this committee. Say-on-pay, the non-binding…

Keeping Your Compensation Committee On Track During the Busy Winter Season

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

Posted by on

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

Posted by and on

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…

Assessing Your Say-on-Pay Vote

What directors should understand about say-on-pay voting and how to improve results in the future.

Posted by and on

As banks prepare for their annual shareholder meetings, most will have a say-on-pay vote where shareholders indicate whether they sup­port the executive compensation program. This process has pressured companies to improve their compensation disclosures and clearly explain their pay practices…

Responding to Pressure

How Regulators are Changing Bank Incentive Pay

Posted by on

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…

Balancing Act

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

Posted by on

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…

CEO Salaries Rise Modestly

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

Posted by on

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

Posted by and on

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.…

Looking Forward

Emerging Trends in How Banks Pay the Board

Posted by and on

As banks grappled with difficult financial times during and after the recession, many boards did not get pay increases for their service, despite increasing responsibilities and time commitments. That appears to be changing. Meridian Compensation Partners’ Susan O’Donnell and Daniel…

Compensation Committee Best Practices

A Checklist To Determine Whether Your Compensation Committee Has The Best Process

Posted by on

Compensation committees today face increased responsibilities, time commitments and risks. The Dodd Frank Act, the Securities and Exchange Commission (SEC) and the stock exchanges are mandating new governance standards and disclosure rules. Bank regulators, shareholders and their advisory firms (e.g.…

New Realities of Executive Compensation in the Banking Industry

The Impact of Regulatory and Shareholder Influence for 2013-2014

Posted by and on

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…

Incentive Compensation Trends

How the Federal Reserve is Influencing Pay

Posted by on

In the absence of final guidance from regulators on incentive compensation risk (Section 956 of the Dodd-Frank Act), the Federal Reserve is actively driving for changes in compensation practices and incentive use among the largest banks as part of its…