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Banking Boards

For some reason, the board members of larger banks are making more money than ever while these institutions are under pressure.

By Tony LoPinto | Updated on April 02, 2013
Banking Boards

The interest in board of director opportunities is at an all-time high, as larger-than-ever pools of baby boomers reach the age of consideration for board membership. It’s not surprising because a director who is a retired executive can balance their time commitments yet participate in interesting and valuable services while engaging with other high performance individuals. Historically one does not take on a board seat for the money. Generally total compensation for a director (cash and stock) is in the range of $150,000, with some lower and some higher. However, a recent article reported that director compensation for the big banks has skyrocketed. For instance, Goldman Sachs directors received almost $500,000 per year, a figure that was up over 50% from 2008. On average, banks compensate their board members $95,000 more than other large corporations. This is an interesting situation considering that executive pay at the banks is under severe pressure and compensation is on the decline. Go figure.

Tony LoPinto is the Global Sector Leader of Korn/Ferry International’s Real Estate Practice and founder of SelectLeaders. The views expressed in this article are the author’s own.

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