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Maryland bankers say they are committed to working with federal officials on a proposal to review executive compensation, even if that means sacrificing some immediate pay and benefits.

The Federal Reserve Board is requesting public comment through late November on the proposal that officials say is designed to attempt to ensure that the incentive compensation policies of financial institutions do not damage bank safety and soundness. The 28 largest banks — which include some of Maryland's most popular banks, like Bank of America and Wells Fargo — would be required to submit compensation plans to the Fed.

Thousands of smaller banks regulated by the Federal Reserve, including more than 35 with headquarters in Maryland, would also face some type of review.

It's a concern in that EagleBank's fast growth is attracting more executives with compensation issues, said Ronald D. Paul, chairman and CEO of Eagle Bancorp. As of Sept. 30, total assets at the Bethesda bank were $1.7 billion, some 15 percent more than a year earlier and more than double from two years earlier.

But top executives are willing to sacrifice immediate compensation for long-term benefits to the entire banking system, he said.

"There are certain limitations" in working with new federal regulations, Paul said. "But we are committed to the long term."

EagleBank's base salaries to Paul and its COO are below the market median in a review conducted by a compensation consulting company last year, according to the bank's 2009 proxy statement filed with the Securities and Exchange Commission. Paul's base salary was $350,000 last year, the same as in 2007. His total 2008 compensation, including bonuses for achieving desired financial goals and option awards, was $489,388, not far from his 2007 total.

CEOs at the four other largest Maryland-based banks in deposits — Sandy Spring Bancorp, First Mariner Bancorp, First United Corp. and Shore Bancshares — received higher total compensation packages in 2008, according to their proxy statements.

"Our compensation policies are not over the line," Paul said.

The compensation of bank executives at the five institutions with the most Maryland deposits generally declined more drastically in 2008 from 2007 than it did at the five largest banks with headquarters in Maryland. However, at some banks, CEO compensation actually increased last year.

Bank of America CEO Kenneth D. Lewis, who plans to leave at the end of this year, made $10 million last year, down considerably from $24.8 million in 2007, according to the bank's latest proxy statement.

Under pressure from the federal government, Lewis agreed not to receive his base salary and bonuses for this year. But he is still eligible for millions in deferred compensation and pension benefits.

Federal officials have long generally reviewed executive compensation, so there likely won't be much new for many banks, said John Lane, president and CEO at Congressional Bank. However, banks that accepted federal capital through the Troubled Asset Relief Program could face more scrutiny, he said.

The Montgomery County bank, which did not accept TARP funds, is growing, to $203 million in assets as of June, up from $174.4 million a year earlier, according to the FDIC.

"We are doing well," Lane said. "We probably have the lowest level of nonperforming assets in the mid-Atlantic region. We've always been conservative."