Survey of Commercial Lenders in New England and New York Reveals Trend Toward Higher Compensation, More Raises in 2010
A comprehensive salary survey of commercial lenders in the northeast by the Executive Search Group Finds Banks in Northeast Pay Higher Salaries Tied to New Business Development and Formal Credit Training
Scarborough, ME, January 12, 2011 --(PR.com)-- Nearly 90 percent of commercial lenders in New England and New York received a pay increase in 2010, according to a survey of lenders from national, regional, and community banks and credit unions conducted by The Executive Search Group (ESG), www.executivesg.com, one of the region’s leading search firms and an affiliate of MRINetwork, www.mrinetwork.com, one of the world’s largest executive search and recruitment organizations.
Results showed salaries were highest among lenders who produced the largest volume in new business and managed the largest portfolios. For instance, lenders who produced more than $20 million in new loans annually made an average of $181,000 in total compensation, more than 70 percent more than lenders who produced less than $10 million, who made an average of $96,000.
Furthermore, it appeared that the most highly valued educational credential was formal credit training, not an MBA. Lenders who completed formal credit training made 20 percent more than those who have an MBA but no credit training.
“We continue to see strong demand for experienced commercial lenders at banks of all asset sizes,” said Peter Smith, president and CEO of the Executive Search Group. “This survey shows that large and small banks alike in the northeast continue to compete for a limited talent pool, driving increases in salaries and bonuses.”
The survey was conducted between October 1 and November 26, 2010 via an online and telephone poll of 581 lenders from 242 banks and credit unions doing commercial business in Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut and New York. The results revealed in-depth compensation metrics including base salaries, annual bonuses and long-term incentive plans for lenders from all types of banks and with a range of experience.
Regionally, respondents reported current base salaries with ranges from less than $55,000 to greater than $150,000 annually for individual contributors, with 88 percent noting a salary increase in 2010. Total compensation, including bonuses and incentives, ranged from just under $60,000 to $315,000, with the range most closely related to the size of individual’s loan portfolio and annual loan production. As a percentage of total compensation, bonuses were relatively low ($16,000 on average).
Base salaries varied widely from state to state in 2010, with New York paying the most ($145,000) and Vermont the least ($83,000) average base salary. Massachusetts base salaries averaged $122,000, followed by Rhode Island at $121,000, Connecticut at $117,000, New Hampshire at $92,000, and Maine at $87,000.
Base salaries across the region showed 28.1 percent earning less than $80,000; 19.8 percent earning $81,000-$100,000; 28.7 percent earning $101,000-$120,000; and 20.1 percent earning $121,000-$150,000. Only 3.3 percent had a base salary of more than $151,000 a year. The survey data showed that publicly traded banks pay more in base salary and annual bonuses than privately owned banks, mutual banks, and credit unions.
According to Carll Wilkinson, Managing Partner at the Executive Search Group, the survey revealed that lenders with 20 years of experience or more outnumber those with less than five years of experience by a ratio of about four to one. In total, 24 percent of the lenders who responded to the survey were planning on retiring within five years.
“This data confirms the trend we’ve seen for a number of years; the lender population in New England is aging without a viable feeder system to support future job openings in this field,” said Wilkinson. “Most of the super-regional and national banks have done away with traditional management training and commercial credit training programs, which used to introduce new lenders into the field every year.”
Of the survey respondents, more than half specialized in commercial and industrial lending, 34 percent specialized in commercial real estate lending, and the remaining respondents focused on asset based, construction, or other specialty lending areas.
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About The Executive Search Group:
Founded in 1998, The Executive Search Group serves Banks, Credit Unions, and Wealth Management Firms throughout New England and New York, specializing in full service Retained and Priority searches for middle and senior management. In addition, ESG offers recruiting related consulting services, such as Personality Assessments, a la carte Interview Services and Consulting, and Employment Brand Consulting. ESG is the premier banking search firm in the Northeast, with a network of over 30,000 banking professionals across the region. For further information call 207-510-6666 or visit the firm's website at www.executivesg.com
About MRINetwork®:
Management Recruiters International, Inc., branded as MRINetwork®, is one of the largest executive search and recruitment organizations in the world. MRINetwork has approximate 850 offices in over 35 countries. Visit MRINetwork at www.mrinetwork.com.
Results showed salaries were highest among lenders who produced the largest volume in new business and managed the largest portfolios. For instance, lenders who produced more than $20 million in new loans annually made an average of $181,000 in total compensation, more than 70 percent more than lenders who produced less than $10 million, who made an average of $96,000.
Furthermore, it appeared that the most highly valued educational credential was formal credit training, not an MBA. Lenders who completed formal credit training made 20 percent more than those who have an MBA but no credit training.
“We continue to see strong demand for experienced commercial lenders at banks of all asset sizes,” said Peter Smith, president and CEO of the Executive Search Group. “This survey shows that large and small banks alike in the northeast continue to compete for a limited talent pool, driving increases in salaries and bonuses.”
The survey was conducted between October 1 and November 26, 2010 via an online and telephone poll of 581 lenders from 242 banks and credit unions doing commercial business in Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut and New York. The results revealed in-depth compensation metrics including base salaries, annual bonuses and long-term incentive plans for lenders from all types of banks and with a range of experience.
Regionally, respondents reported current base salaries with ranges from less than $55,000 to greater than $150,000 annually for individual contributors, with 88 percent noting a salary increase in 2010. Total compensation, including bonuses and incentives, ranged from just under $60,000 to $315,000, with the range most closely related to the size of individual’s loan portfolio and annual loan production. As a percentage of total compensation, bonuses were relatively low ($16,000 on average).
Base salaries varied widely from state to state in 2010, with New York paying the most ($145,000) and Vermont the least ($83,000) average base salary. Massachusetts base salaries averaged $122,000, followed by Rhode Island at $121,000, Connecticut at $117,000, New Hampshire at $92,000, and Maine at $87,000.
Base salaries across the region showed 28.1 percent earning less than $80,000; 19.8 percent earning $81,000-$100,000; 28.7 percent earning $101,000-$120,000; and 20.1 percent earning $121,000-$150,000. Only 3.3 percent had a base salary of more than $151,000 a year. The survey data showed that publicly traded banks pay more in base salary and annual bonuses than privately owned banks, mutual banks, and credit unions.
According to Carll Wilkinson, Managing Partner at the Executive Search Group, the survey revealed that lenders with 20 years of experience or more outnumber those with less than five years of experience by a ratio of about four to one. In total, 24 percent of the lenders who responded to the survey were planning on retiring within five years.
“This data confirms the trend we’ve seen for a number of years; the lender population in New England is aging without a viable feeder system to support future job openings in this field,” said Wilkinson. “Most of the super-regional and national banks have done away with traditional management training and commercial credit training programs, which used to introduce new lenders into the field every year.”
Of the survey respondents, more than half specialized in commercial and industrial lending, 34 percent specialized in commercial real estate lending, and the remaining respondents focused on asset based, construction, or other specialty lending areas.
###
About The Executive Search Group:
Founded in 1998, The Executive Search Group serves Banks, Credit Unions, and Wealth Management Firms throughout New England and New York, specializing in full service Retained and Priority searches for middle and senior management. In addition, ESG offers recruiting related consulting services, such as Personality Assessments, a la carte Interview Services and Consulting, and Employment Brand Consulting. ESG is the premier banking search firm in the Northeast, with a network of over 30,000 banking professionals across the region. For further information call 207-510-6666 or visit the firm's website at www.executivesg.com
About MRINetwork®:
Management Recruiters International, Inc., branded as MRINetwork®, is one of the largest executive search and recruitment organizations in the world. MRINetwork has approximate 850 offices in over 35 countries. Visit MRINetwork at www.mrinetwork.com.
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MRINetwork
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www.mrinetwork.com
Brian Hyland
212-687-8999
www.mrinetwork.com
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