A bank’s success is dependent upon the ability and loyalty of its leadership. Competitive benefits packages are vitally important to a bank that wants to attract, retain, and reward key officers and employees. Federal regulations allow members of a board of directors to receive life, health and long-term care insurance in exchange for their service to the bank.
BCC can help you establish the policies, procedures and tax reporting necessary to implement benefits as well as the insurance products required at your bank or financial institution.
DCIPs serve as motivation for bank employees with yearly targets to reach. Depending on the agreed-upon target, it may involve fully reaching the goal or only a percentage.
SCPs are usually crafted by a formula that determines benefits, with fully-vested individuals being those who reach retirement while remaining continuously employed by a company.
EDCPs are tax-friendly options that help executives minimizing taxes and save additional money for retirement without the limits inherent in traditional retirement plans.
Stock Option plans (SOPs) allow executives to purchase bank stock at a predetermined price. There are many options available within this type of plan and all need thorough exploration.
Phantom stock plans (PSPs) issue phantom shares that are granted at the book value or fair market value per share. The duration of the plan may be short-, mid- or long-term.
Banks that design and implement desirable benefit plans will reduce turnover, showcase the benefits of employment to potential desirable talent, and increase value in the eyes of stockholders. If you’re ready to create appealing director compensation packages for your financial institution, contact us. We look forward to working with you!