I’m an old school sort of marathon runner. While I appreciate that technology has improved the sport (and the athletes), I prefer plain water and a banana over specially blended electrolytes in flavors like cappuccino or French toast. To add to my disdain, the cost of running a race has increased substantially over the years, with the addition of perks that I don’t care for—big finisher medal, fancy race shirt and jacket, musical entertainment at the finish line, boxed snacks, massages, hummus, low carb beer—and don’t motivate me to participate. To each his own, for sure!
When perks aren’t perks, is that a hindrance to performance or morale? My race experience isn’t unlike executive bonuses and incentives. How much value do you place on such programs?
Next week, my colleague Rob Fitzgerald is speaking at the Defense Credit Union Council Annual Conference. He will be reviewing how credit unions can use tax-advantaged plans to structure short- and long-term incentives for their executive team. With the NCUA’s recently issued guidance to its examiners, it’s worth brushing up on what the agency is looking for in executive benefit plans and ensuring your program meets the agency’s expectations.
Developing a benefit plan that is actually a real benefit to your executive team is just as important as meeting regulatory requirements. Taking the time to understand what motivates your valued executive team helps strengthens your total compensation and rewards program, which ultimately improves retention. “Pay for performance,” specifically where greater risk (variable pay) leads to greater rewards, has both pros and cons.
Share your experience. Take our quick survey on fixed vs. variable pay. We’ll share the results, along with Rob’s presentation, after the conference. Get started »