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#1696036 - 05/04/12 06:40 PM Director Compensation
Anonymous
Unregistered

Just throwing a general question out there... our institution pays the directors a fairly generous stipend each month for serving on the Board/committees, and our Board or various committees meet once a week. I'm sure the compensation is a fairly common practice. I'd like to know how other institutions pay their directors, meaning are they paid ONLY for the meetings they attend and participate in? Or, are they paid for each and every meeting? We have one trustee in particular who has missed 9 meetings so far this year yet has collected his pay for every single meeting. Just curious, since I'm doing a slow burn every time I think about it.

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#1696046 - 05/04/12 06:46 PM Re: Director Compensation Anonymous
Doug Hendrickson Offline
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Doug Hendrickson
Joined: Oct 2009
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It would depend upon the policy of the bank or the contract with the Director. Generally boards only meet once a month and committee meetings dependent upon the business at hand. If your board is having meetings weekly, they may be being paid on something other than a 'per meeting' basis.
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#1696133 - 05/04/12 08:10 PM Re: Director Compensation Anonymous
Anonymous
Unregistered

$1B Asset state chartered bank. The directors meet monthly and gets paid $500/person/meeting. Not too shaby, I think.

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#1696155 - 05/04/12 08:44 PM Re: Director Compensation Anonymous
Anonymous
Unregistered

Being on the Board of Directors is not an easy job (or should not be). They are assuming a lot of risk and responsibility. At least at our FI, they do a lot more than just show up to a meeting once a month, and they are all also shareholders with a vested interest in being sure that our bank is in compliance and profitable. It may seem like a lot of money, but it's a definite commitment and the bank is paying the directors for that commitment. Now, as for the director who missed 9 meetings, his/her contract may specify paid whether attending each meeting or not. Or maybe they aren't present in the bank but they attend remotely on conference call or something, or they may have a health issue preventing them from attending and the bank has decided to continue paying their stipend. I don't know the circumstances, so it's best not to judge/speak to that.

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#1696249 - 05/05/12 10:12 PM Re: Director Compensation Anonymous
Anonymous
Unregistered

As the original poster, I can state for sure that the director who is MIA is not absent due to health concerns nor does he participate remotely. He simply doesn't show up. And at a compensation rate of $1,000 per month, it just doesn't seem right. I make the compensation entries so I'm fully aware of the goings-on.

We're a one-office institution. Oh, and the various committee members are paid an additional stipend for doing a drive-by of the subject property prior to the official appraisal order being placed -- and the couple of committee members who winter in the south continue to receive this additional money. Kinda odd since they're 1,500 miles away for 5-6 months of the year and I'm 100% positive they don't fly back home for a few hours to conduct the drive by inspection.

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#1696251 - 05/05/12 11:01 PM Re: Director Compensation Anonymous
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 77,277
Galveston, TX
Executive and director compensation is a hot button for the regulators right now. I would leave it up to them to determine whether or not this is fair, equitable and within the regulatory guidelines. It is not something for an employee to worry about.
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#1696253 - 05/05/12 11:30 PM Re: Director Compensation Anonymous
Happy Birthday Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,277
Regulators are looking at director participation right now, in detail. Let them note it and comment on it.
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#1696544 - 05/07/12 06:49 PM Re: Director Compensation Anonymous
Jokerman Offline
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Joined: Nov 2003
Posts: 12,846
It's not clear to me what the original poster's bank's director compensation plan is - are they paid on the basis of attendance at particular meetings, or are they paid a flat monthly fee?

I've surveyed this several times at peer banks and have seen a wide variety - from bank's who pay a flat amount per month, those who pay a flat amount per committee/chairmanship, and those who actually pay based on which meetings you show up to (e.g., $X per regular monthly board meeting, $Y per audit committee meeting, $Z per loan/discount committee meeting, etc.).

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#1696720 - 05/08/12 12:53 PM Re: Director Compensation Anonymous
HappyGilmore Offline
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Joined: Jun 2004
Posts: 19,312
Pulling people out of the ditc...
Ours are paid based on being a Board member; if they choose to miss meetings we still pay them. I'll let the Chairman worry about that, I have enough issues I have control over that I need to deal with, I don't need to seek others out.
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