Bank Director Compensation: Consider Adopting These Big Company Practices at Your Bank

While community banks aren’t known to be early adopters, three emerging trends in board director pay have merit for organizations of any size.

Based on Pearl Meyer’s annual Director Compensation Report and analysis, these three practices maybe be beneficial for banks large and small:

• The shift toward retainer-based pay;
• Delivery of over half of pay for board service in stock; and
• The adoption of stock ownership guidelines.