Protect your investment in top execs
Four SERP best practices
The process of recruiting and developing a top-performing executive is a major investment. Losing that executive to a competitor after this outlay has really begun to pay off can be a serious, long-term blow to morale, productivity and financials.
Supplemental executive retirement plans can protect a credit union’s investment in top talent and help recruit the best candidates. In fact, the “R” in SERP could easily stand for “retention” and “recruitment” in addition to “retirement”—but only if the SERP is designed carefully. A good SERP protects the credit union’s interests while providing a meaningful incentive for executives.
Maybe that sounds like a tall order. But as the average CU asset size continues to grow, and as competition increases for leadership talent, more and more credit union boards are looking to SERPs as an essential element of executive compensation packages.
The Ripple Effect of a Top Executive’s Abrupt Departure
Unfortunately, credit unions often wait to engage an executive benefits firm to help set up SERPs for their leadership team in the difficult aftermath of a top executive’s departure.continue reading »