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Compensation  >>   STI and LTI for bank executives Search Discussion Posts
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STI and LTI for bank executives  
Posted: 11/19/2007 03:54pm   75 Views

We are a public bank ($715 million) and we need info on executive compensation.  What surveys/tools would you recommend for long-term incentives and short-term incentives? 




STI and LTI for bank executives  
Posted: 11/20/2007 12:12pm  

Might not need a separate survey, because you can look up the proxies of all public commercial banks and do your own analysis.  There is a do-it-yourself courtesy access link to all public executive comp data at the very top of the ERI homepage under "board compliance" @ www.erieri.com.  ERI Assessors contain analyzed data, showing very few of your size ($715M in assets, right?) in your state and the two at that size pay exactly the same, cash-wise.  One looks like you, except for a different initial.

The Exec. Comp. Assessor shows updated size-adjusted cash and non-cash TC, detailing projected Restr. Stock Awards, SARs, LTI and Other non-salary comp from the most current proxy years of all employers by job, industry and location.  That software combines private and public surveys, so the practices of private banks may also be included.  However, research has proven that there is no difference in amount paid between privates and publics, just different TC components used.  If anyone is concerned about private practices being included, the Comparables Assessor, Consultant edition, allows you to isolate discrete observations among public employers and to conduct your own unique survey from proxies and use the re-analyzed results any way you want. 

Paying the same as your peers rarely make sense, however, since what THEY pay is aways based on their enterprise-specific payout of the components of their total of guaranteed cash, bonus, STIs and LTIs.  Unless you perfectly mirror your competitors in both history and future plans, their pay won't be right for you. 

Any competent banking comp consultant can whip up figures on comparables for you if you want a cut-out.  An outside consultant's advice would be invaluable re incentive policy options customizeable to your circumstances.

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