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It’s Time to Rethink Your Organization’s Long-Term Succession Planning
Most financial organizations have an aging workforce where many executives are getting closer to retirement.
Thinking about executive succession planning is more crucial now than ever.
In the 2018 Bank Director Survey, over 37% of banks cited succession planning for executives as a top 3 challenge.
Another 25% said they were dissatisfied with their bank’s succession planning efforts.
Millennials and the Financial Industry 2018: Growing Your Workforce and Client Base
Businesses everywhere are looking for ways to capitalize on the millennial generation.
Now in their mid-20s to mid-30s, millennials are primed to become the driving force of business growth as part of the workforce and client base.
The big question is, how can banks and credit unions attract millennials?
Time to get woke.
- Appealing to a Younger Audience
- Attracting Millennials to Your Financial Institution
- How to Attract Millennials to Your Bank or Credit Union
- What Do Millennials Want From Financial Institutions?
- Developing a Recruiting Strategy
Why Forward-Thinking Banks Need to Recruit Millennials
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…)
3 Reasons 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…)
Read These 10 Financial Industry Resources to Start 2017
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…)
Compensating IT Professionals in Financial Institutions
There 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 SERPs 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 Want
By 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…)
Compensation in a World of M&A Pt. 2: 4 Steps for Buyers
Because 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 Sellers
Mergers 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…)
What is a 280G Parachute payment?
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…)
The 4 Habits of Successful Bank Compensation Committees
Rewarding and Retaining Commercial Lenders at Your Bank
One 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…)
Takeaways from the Bank Director 2016 Compensation Survey
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…)
Designing the Right Equity Compensation Plan for Your Bank
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…)
5 Compensation Myths about Retaining Key Personnel
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…)
5 Best Practices to Follow When Designing NQDC Plans
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.
The 3 Pillars of a Community Bank 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.