How to right-size a SERP
First, establish the underlying purpose of your credit union’s executive benefits package.
A main barrier to putting in place a supplemental executive retirement/retention plan is that credit union boards don’t know how to start. How much beyond an annual salary and bonus—if anything—should it take to reward, retain, or recruit excellent leaders?
It may be counter-intuitive, but the key is not to start with numbers. Instead, start by defining the purpose of your SERP.
Defining the general purpose is the easy part: SERPs can help create continuity of strong leadership in credit unions. They give credit unions a tool for competing with stock options and other benefits our commercial counterparts can offer their executives.
However, each SERP should also serve a specific goal, one that’s unique to each credit union and executive. Take these three steps to create a SERP that’s designed to serve the specific goals of the recipient—while also serving your credit union’s long-term strategy.
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