Six Effective Compensation Committee Practices

In today’s environment of continued pressure on bank profitability, it’s imperative that compensation programs are designed to support the strategic business plan. While banks commonly face scrutiny from regulators, shareholders, media and employees with regard to executive compensation, Boards cannot afford to take a “follow the pack” mentality and focus exclusively on regulation and prevalent practices.

We look at six over-arching practices that a bank’s Compensation Committee can enact to will help drive effective compensation program design over the long-term and support its organization’s unique strategy.