Banks need to think about recruiting and retaining Millennial employees.

According to the Bank Director 2016 Compensation Survey, about two-thirds of banks surveyed are focusing on attracting Millennials as employees, but of those that are, only about half have been successful in their efforts. The remaining 33% of banks surveyed stated that attracting Millennials was not a current focus. (more…)

Bank executives telecommuting is one reason it’s necessary to use national compensation peer groups.Competition for top executive talent in the financial industry is high, and this has led banks to find new, innovative strategies to reward and retain talent. It’s vital to be competitive on both a regional and national level through the benefits your institution offers to its team members, so you need to understand how your peers are compensating their talent. (more…)

Start your 2017 with these financial industry resources from 2016.

There is a wealth of informational resources available for banks and credit unions on the web. The financial community is extremely active when it comes to sharing information, and we are pleased to see the conversations taking place. (more…)

The Succession Planning ProcessAs the banker population is aging and many executives are getting closer to retirement, thinking about executive succession planning is crucial. Regulators want to see that banks have succession plans in place in both the long term and the short term, (more…)

Compensating Information Technology Professionals in BankingThere are a number of reasons why financial institutions must stay ahead of the curve when it comes to technology. On the one hand, customers want convenience. This comes in the form of technology like online banking and mobile applications. (more…)

How to Make Supplemental Executive Retirement Plans Work for You and Your Bank

Supplemental Executive Retirement Plans (SERPs) are a valuable compensation tool that banks can use to attract and retain executive talent. SERPs are nonqualified deferred compensation arrangements that are non-elective, meaning the bank is responsible for contributions to the plan. (more…)

Know What Your Employees WantBy JR Llewellyn, Senior Vice President, Compensation Advisors. This article was originally published by Bank Director.

A reoccurring theme with bank regulators is the retention and succession of talent. The question continues to come up: What are bankers doing to incent their employees to stay, or to recruit new talent? The use of incentives in employee compensation plans remains alive and well (more…)

Steps for Buyers in Mergers & AcquisitionsBecause M&A activity is on the uprise, we’ve been covering compensation in a world of bank mergers and acquisitions in a 2-part blog series. To make all aspects of the transaction go more smoothly for both sides, financially as well as socially, there are steps buyers and sellers need to take prior to a change in control. (more…)

Compensation in a World of M&A Part 1: 4 Steps for SellersMergers and acquisitions are on an uptick in the financial sector. There are a variety of reasons for this trend of M&A activity. Among the most common causes are: fatigue among bankers, regulatory burdens that result in smaller profits, competition for loans leading to compressed margins, shareholders wanting out, and talent shortages. (more…)

Golden Parachute Payments Planning for a potential acquisition or sale is crucial, regardless of the current probability of a change in control occurring. Payments contingent specifically upon a change in control are often known as 280G parachute payments or golden parachute payments. (more…)


4 Bank Compensation Committee Best Practices

By JR Llewellyn, Senior Vice President, Compensation Advisors. This piece was originally featured in Bank Director. (more…)

Attracting and Retaining Commercial LendersOne of the findings of the 2016 Bank Advisor Compensation Survey was something many community banks already knew well: the need for talented commercial lenders. Commercial lenders are currently in high demand, and banks are snatching up the best talent. (more…)

The Bank Director Compensation Survey surveys bank executives and directors about banking industry trends.

The annual Bank Director Compensation Survey, sponsored by Compensation Advisors, seeks to illuminate banking industry trends by surveying banking executives and directors about compensation. The results are now in for 2016’s survey, and they highlight critical issues in the banking worldwith regards to attracting and compensating executives and other top employees.  (more…)

Do we need Millennials in banking? The answer is yes.Businesses everywhere are looking for ways to capitalize on the Millennial generation (typically defined as anyone born between 1980 and the early 2000s). These businesses must adapt to appeal to Millennials, who represent a large portion of the consumer base, and banking is no different. (more…)

equity-compensation-plan

Equity plans are an attractive form of compensation for banks that want to attract and retain top executives. While equity plans are beneficial, it’s important that your bank remain sensitive to what is valued by the participants, what the bank has authority to grant, and dilution to be experienced by the shareholders. (more…)

Retaining key personnel is crucial, but some community banks have misconceptions that hold them back.

Retaining top executives is of utmost importance to community banks who wish to remain competitive in a constantly evolving landscape. Community banks must compete against other banks, credit unions, and even other companies as leadership skills transcend industries. Unfortunately, many fall prey to misconceptions about executive retention and tend to approach compensation practices the wrong way. (more…)

Your bank should follow these best practices when designing your nonqualified compensation strategy. The IRS imposes limitations on qualified plan contributions, putting highly compensated employees (HCEs) at a disadvantage when saving for retirement. Nonqualified deferred compensation (NQDC) plans were designed to provide a supplemental benefit for HCEs, but in addition to helping executives plan for retirement, NQDC plans can be put in place by banks to retain and recruit top executive talent by providing a long-term incentive and retention strategy.

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To improve how your bank approaches compensation for executives, here are 3 aspects of a successful compensation philosophy.

An executive compensation philosophy functions as a mission statement and a guide that positions your organization to retain and recruit talent. You may be under the impression that compensation philosophies are only for national banks and other large organizations, but they are crucial for community banks, too. Compensation philosophies are for forward-thinking, proactive organizations looking to generate maximum value from their compensation dollars and hire consistent, high performing talent.

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