Regulatory Alerts1997-01-01
Approval of Officer Compensation by an Institution ’s Board of Directors
State Bank Commissioner W. Newton Male issued Memo RM97-5 to clarify board responsibilities under K.S.A. 9-1114 and K.A.R. 17-11-14 regarding officer compensation. The memorandum mandates that the full board of directors retain final approval authority for specific compensation amounts, even if preliminary review is delegated. It further requires that these approvals be formally recorded in board minutes, allowing for confidential schedules only if the board explicitly adopts this method and verifies member review.
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