Banks provide security for their clients' money and investments while making profits for investors and shareholders. Most banks offer loans, saving options, bonds and certificates of deposit, and in some instances insurance and wealth management services. Banks compete with one another for customer loyalty, and must also compete with non-banking institutions, such as insurance firms and independent financial advisers. Bank presidents earn a salary plus bonuses, profit sharing and commission.
National Average Salary
A Payscale report updated in December 2010 shows bank presidents earn an annual salary of $96,000 to $194,000. Part of this income comes from bonuses, which total as much as $30,000 a year, and profit sharing totals of as much as $10,000 a year. Bank presidents who earn commissions report receiving as much as $23,000 a year in commissions.
Salary by Bank Size
Presidents of smaller banks tend to make an income not much less than presidents of vast banks. As of 2010, a large bank with 5,000 employees or more has a budget of $200,000 or more for its president, according to PayScale. Yet, presidents at banks with fewer than 200 employees report earning as much as $163,000 a year, and presidents with small, local banks of 50 or fewer employees report making as much as $134,000 a year.
Education and Training
Bank presidents are expected to have a college degree, says the U.S. Bureau of Labor Statistics, preferably a degree in a subject that relates to banking, such as business management or accounting. All bank personnel are encouraged to continue taking classes during their employment, dealing with subjects such as budget management, financial analysis and accounting management.
The U.S. Bureau of Labor Statistics projects an 8 percent job increase for all banking employees through 2018. New local branches will be built to meet the consumer demand for convenience, with many of them sprouting up in nontraditional locations such as inside grocery stores and malls. Additionally, the aging baby-boomer population will create a need for personal banking services, as older people are more likely than young people to be interested in saving their money.
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