CUNA Mutual Group's Bruce Bauer (senior executive benefits specialist) spoke about this controversial subject at ACUC saying credit unions are facing a "perfect storm" when it comes to recruiting, retaining and compensating executive talent. "Jobs are opening up, executive talent is being aggressively wooed away from credit unions."
- Nearly 50% of U.S. employers are challenged to fill mission-critical positions.
- 63% of organizations say other companies are trying to recruit their leadership.
What can be done to help keep your excellent executive at your credit union? Bauer has a four-word answer: Supplemental Executive Retirement Program (SERP). "Regulatory provisions allow credit unions to fund SERPs through formerly impermissible assets."
When developing executive compensation plans, Bauer recommends three things for credit unions:
- Align compensation philosophy with their mission, organizational and financial goals.
- Encourage leadership continuity by defining a scope that addresses the CEO and key executives.
- Use peer compensation data to establish desired competitiveness levels.
What are your credit unions plans for keeping your executives?
Learn more about SERP here.