at a slow, steady rate in 1994, those groups rewarded their top executives handsomely for their modest success. Revenues rose by 5.7% between 1993 and 1994 at seven trade groups surveyed by American Banker. But compensation for the top executives increased 15% on average in the same period, from $303,235 to $348,740. Marc Lackritz, president of the Securities Industry Association, surpassed Donald Ogilvie, executive vice president of the American Bankers Association, as the highest-paid trade group executive. Mr. Lackritz earned $518,148 in salary, benefits and expenses in 1994, a 26.9% increase over the previous year. Mr. Ogilvie, the highest ranking salaried ABA official, received a modest 2.4% raise, to $501,640. While most top executives enjoyed healthy raises, compensation for all executives increased at a far slower rate than in 1993. The groups reported total executive compensation of $4.9 million, a 4.1% increase from the $4.7 million they paid in 1993. Compensation for all trade group employees rose from $38.7 million to $41.7 million, a 7.8% increase. But the numbers can be deceptive. For example, Anthony T. Cluff, executive director of the Bankers Roundtable, enjoyed a 22% raise in 1994 to $250,000. But the raise reflects a substantial widening of the scope of his duties. In fiscal 1994 the Roundtable was formed from a merger of the Association of Bank Holding Companies and the Association of Reserve City Bankers, putting Mr. Cluff in charge of an organization that was three times larger. On the other hand, Jeff Yates, executive vice president of the Independent Insurance Agents of America, received a 40.5% raise in 1994, even though the group experienced a 12.6% loss in total revenue. Even with the giant raise, Mr. Yates earns $220,126, far less than his counterparts at the six other trade groups. A staff member said a trade group executive's worth cannot be measured in terms of revenue. "Keep in mind that we're a not-for-profit operation," the staffer said. "So our compensation is based on the quality of service that we provide to our members - it's not rated on the profitability or lack of profitability of the association." Indeed, the insurance agents' lobbyists have convinced many lawmakers in Congress to freeze the banking industry's entry into the insurance business. Mr. Serb writes for the Medill News Service.
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