ACB Survey Finds CEO Bonuses Down

Bonuses paid to the chief executives of community banks and thrifts fell by 20% in 2003 despite record mortgage originations, according to a compensation survey by America's Community Bankers.The average profit sharing/bonus payment to CEOs in 2003 was $55,472 compared to $71,900 in 2002. Single-family loan originations hit a record $3.9 trillion in 2003. However, the decline in 2003 bonuses reflects concerns about a decline in loan volumes for the year ahead, according ACB senior vice president Debra Cope. She noted 2002 appears to be "blip" and bonus are returning to more normal levels. Commissions and bonuses paid to managers who oversee single-family mortgage originations also fell. Commissions fell from $71,000 in 2002 to $60,000 in 2003 while the average profit sharing/bonus payments fell from $17,400 in 2002 to $13,900 to 2003. The ACB survey collected responses from 361 banks and most of the institutions have less than $1 billion in assets.