When a credit union implements an executive benefit plan, significant work happens on the front end. The process typically takes six to eight months, including education, goal-setting discussions, financial modeling, and a careful review of the plan’s impact on the bottom line.
Just as important, this process establishes a critical relationship with your consultant—one that sets expectations for long-term service quality and partnership.
After implementation: Is “good enough” really enough?
Once the executive benefit plan is implemented, most service providers will—at a minimum—meet annually with the Board and executive team to review the plan’s financial performance, accounting, and legal provisions. The goal is straightforward: confirm the plan is functioning as designed.
But after all that upfront effort, is that really all you should expect?
As Aldo Gucci famously said,
“Quality is remembered long after the price is forgotten.”
Luxury brands like Gucci succeed because the quality of the experience endures long after the purchase. Executive benefit plans should be no different.
These plans are designed to reward and retain the leaders responsible for your credit union’s success. The quality of the relationship—the board’s relationship with both the executive and its executive benefits provider—should not decline once the documents are signed. In fact, it should deepen.
Signs of a “Gucci” relationship
As you evaluate your ongoing service experience, consider the following:
- Does the person delivering the annual review understand the history and original goals of the plan?
- Is the consultant who initially worked with the Board still involved?
- Are regulatory changes or emerging industry trends proactively discussed?
- Do executives truly understand the plan and the value it provides to their families?
- Are new Board members receiving foundational education on the plan?
When Gucci turns into Bucci
Bucci—the opposite of Gucci. Think of the knockoff belt that looks fine at first, costs next to nothing, and falls apart a year later. It’s disappointing, and it leaves you questioning the decision altogether.
So ask yourself:
Is the quality of service today the same as it was at implementation? Is my service partner delivering on all of the promises made?
Here are questions every Board and executive team should ask their partner during the next annual review:
- Why did we choose this plan over other options?
- What was the original benefit target, and are we still on track?
- Do you meet individually with plan participants each year?
- What trends are you seeing among our peers that we should be aware of?
Why this matters now
Many of today’s conversations center on keeping leadership teams intact. With baby boomers retiring, Boards face CEO transitions—and new CEOs often want to build their own teams. Meanwhile, CEOs who plan to stay with their current credit union are focused on retaining their key executives in a highly competitive environment.
Executive benefit plans play a critical role in these discussions.
If your experience feels more like Bucci than Gucci, it may be time to reassess. A fresh perspective—and the right partner—can make all the difference.
