The approximate salary that a bank vice president receives in the United States is $104,364. In San Fransisco, the salary of the bank vice presidents is about 51% more than in the rest of the United States which goes on to show that the bank vice president’s position is more valued there. Let us know about that the Salaries Of A Bank Vice President.
Answer Section
This is an elite position with high perks and salaries.
The Skills and the Qualifications for a Bank Vice President
In order to become a bank’s vice president one must be a holder of a college degree in the financial area. There must be experience and work carried out in the banking sector or any other financial arena. The degrees could be in accounting, business administration, economics and finance. The prospective vice president of the bank must also possess effective communication skills and market analysis and research expertise.
They could initially be loan officers and might then might become bank vice presidents later as they move up this career ladder. They might also be professionals in the accounting or corporate finance and later change their field towards banking. The amount of experience in such fields muct be 5 – 10 years when they apply for the jobs of the bank vice president.
The Minimum and the Maximum Salaries for Bank Vice Presidents
The minimum salary of the bank vice presidents can be $20, 175 and the maximum could be $530,728. The median, in this case, has been calculated to be $96.788. About 57% of the bank vice presidents earn from $96,790 to $ 241,095 whereas the 86% earn a resounding $530, 728.
The Taxation that the Vice President has to Pay
According to the 2018 figures, these personnel has to pay a federal tax of about 24%. With the deduction of the 24%, the bank vice president has about $ 85,027 to use per annum.
The House Rent that is Available
With the tax deduction, the bank vice president has $ 7,086 per month available for the daily living needs. He/she can almost pay 35.37% of this salary for the house rent which determines the kind of life style that they can afford.
Salaries according to the Locations
Every place for example in the United States, has a specific salary package for the bank vice presidents. Those employed in the South and South West get lesser salaries as compared to those working in the East and North East. The commercial banks, acquisition banks as well as investment banks, all have their own particular salary packages that the bank Vice President can receive. In the New York, a bank vice president can receive $200,000 in the finance speciality group.
With such high salaries there is the requirement of a higher skill set such as management of the business development agreements, supervision of the client based operations, handle the lower echelons of the staff as well as the management of matters relating to the customers.
Factors that Lead to Higher Salaries for the Bank Vice Presidents
Banks that are bigger pay their vice presidents with larger salaries as they expect the vice presidents to shoulder more complicated responsibilities. With the growing experience of each vice president, the salaries also become more. There are also the prospects of bonuses, commissions, stock options as well as other benefits that are associated with this position. The skill sets and the experience also lead to the vice president staying with the bank for prolonged periods such as many many years. The urban areas according to which the salaries vary have salaries depending on the life style in each place.
Opportunities in this Career Segment
There has been an overall 8% increase in the employment opportunities in this career segment as recorded in the years 2008 – 2018. The area which shows the most growth opportunities in being a bank vice president is Chicago. However, as the economy will show growth and upgradation, this career segment would entail more job openings. The better economic growth can lead to the clients having more capital which can improve the possibility of the investments and loans in the banking sector leading to the increase in the salaries of the vice presidents.
Salaries of the Bank Vice Presidents in Investment Banks
At the investment banks, the post of the vice president offers a salary of about $250,000 – $300,000. The bonuses have added values starting from $200,000 to $ 400,000. This suggests that investment banks provide better salaries and bonuses as compared to the other kinds of banks such as acquisition and merger banks. In the investment banks the position is more elite and it leads to more perks and benefits.
Conclusion
The Vice President of a bank is a elitist career position where the individual receives huge salary offerings, perks, benefits and bonuses. Depending on the level of the bank, vice president salaries could be as high as $530,000 per year. Almost 86% of the top personnel get this much salary as it is a high post. Individuals seeking a career path in this domain must be well versed in economics, finance, business adminsitration or accounting. They must also have almost 5 – 10 years of experience in such domains before they end up being bank vice presidents.
Frequently Asked Questions
Q1- In which academic areas do bank vice presidents have to be well versed?
Ans: They have to have degrees and qualifications in finance, economics, accounting and business administration.
Q2 – Why do some areas have better pays for the bank vice presidents?
Ans: This is because these areas have more sophisticated and higher life styles as compared to the others.
Q3 – Is the employment rate in this segment increasing or decreasing?
Ans: The employment rate in this area is increasing as it depends on the economic growth rate of that region.
Q4 – What is the lowest position that can lead to being a bank vice president?
Ans: It is positions such as the loan officers.
