Lessons Learned From Clifton Savings Bank

against the market. Competitive market assessments should be conducted at least every two (2) years, and in more fluid markets and industries, at least annually. Results of the market assessment should not be put on a shelf; action should be taken to adjust pay levels so that they coincide with peers, both from a compensation and Bank-performance standpoint.

Lesson #3: Periodically assess the compensation programs. Boards should examine their executive compensation programs every two (2) years to ensure that they: 1) continue to meet the objectives for which the plan was originally designed; 2) provide appropriate rewards to the level of performance achieved by the Bank