North Dakota Governor Praises Bank of North Dakota's Employee Bonus Program

The state-owned bank's new performance-based bonus plan aims to improve retention and reward staff as a team.

Published on Mar. 4, 2026

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The North Dakota Industrial Commission has approved a new employee bonus program at the Bank of North Dakota, the state-owned bank. The "SMART Plan" will pay out up to $2.1 million in bonuses over the next three years to 167 qualifying employees, with the first $772,000 installment already distributed. Governor Kelly Armstrong praised the program as a better approach than recent large bonuses awarded at another state agency.

Why it matters

The Bank of North Dakota's bonus program is designed to help the state-owned bank compete with private sector salaries and retain talented staff. It comes after scrutiny over large individual bonuses at another state agency, highlighting the challenges of public sector compensation.

The details

The SMART Plan will pay employees a bonus equal to 14.25% of their 2025 base salary, with a third of that amount ($705,000 total) distributed now. Employees will receive identical bonus payments in 2027 and 2028 if they are still at the bank, encouraging retention. The bonuses are based on the bank's overall performance in four key areas: credit quality, enterprise risk management, financial performance, and mission/strategy alignment.

  • The North Dakota Industrial Commission approved the SMART Plan bonuses during its Feb. 24, 2026 meeting.
  • The first $772,000 in bonuses were paid out immediately.
  • Employees will receive the remaining two-thirds of their 2025 bonuses in 2027 and 2028 if they are still at the bank.

The players

Kelly Armstrong

The Governor of North Dakota, who chairs the North Dakota Industrial Commission that oversees the Bank of North Dakota.

Don Morgan

The CEO of the Bank of North Dakota, who developed the SMART Plan bonus program.

Drew Wrigley

The Attorney General of North Dakota, who is a member of the North Dakota Industrial Commission.

Doug Goehring

The Agriculture Commissioner of North Dakota, who is a member of the North Dakota Industrial Commission.

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What they’re saying

“As the chair of two committees that have two different bonus plans, I like this one a lot better. The benefits to this is we are competing with private sector, and it's a way to keep base salaries in line.”

— Kelly Armstrong, Governor of North Dakota (North Dakota Monitor)

“We wanted it to be motivating as one team to all Bank of North Dakota staff. So we made the payout percentage the same for everybody in the organization, whether you're the CEO or down on the teller line or our janitorial staff.”

— Don Morgan, CEO, Bank of North Dakota (North Dakota Monitor)

“I appreciate what it's doing, because it's creating a culture. I just want to make sure that the stretch goals are sufficient. You start attaining these all the time, and it's too easy, and it's going to suffer a lot of criticism and scrutiny that way.”

— Doug Goehring, Agriculture Commissioner, North Dakota (North Dakota Monitor)

What’s next

The Bank of North Dakota's advisory board is reviewing the 2026 SMART Plan that will set benchmarks for the program's second year. The plan will be presented to the Industrial Commission for review in the coming months.

The takeaway

The Bank of North Dakota's new performance-based bonus program aims to improve employee retention and reward staff as a unified team, in contrast to the large individual bonuses that have drawn scrutiny at other state agencies. The thoughtful design of the program highlights the challenges public sector employers face in competing with private sector compensation.