Nine steps to creating a deferred compensation program

Strengthen your executive compensation strategy with long-term incentives that competitors can’t easily match.

by John Pesh, CCE, CU Management

It’s easy for a competitor who’s courting one of your best executives to offer a higher salary and annual bonus. If that executive has a well-designed deferred compensation program in place, however, your competitors have additional hurdles to clear, including:

  • Matching or exceeding future benefits—such as lump-sum payouts and/or supplemental retirement income—that your executive would forgo by leaving your credit union
  • Convincing your executive that they will reward loyalty and performance in the future the way you already have

Holding on to a valuable leader is only one objective credit unions achieve today via deferred compensation. To learn why and how to use this compensation strategy, read the 2021 edition of “Non-Qualified Executive Benefits: A Guide for Credit Union Leadership,” published by CUNA Mutual Group in collaboration with CUES.

 

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