Committees : Compensation
Banks may need to update their compensation plans following the hastening workforce shift brought on by the coronavirus pandemic.
Bank leadership teams should consider how to alleviate this huge stress point for their employees.
In today’s economic uncertainty it is important that directors and banks understand the differences and nuances when it comes to BOLI management and investment.
How companies manage their human capital through the Covid-19 crisis will be a key differentiator, both from an economic and a public relations standpoint.
Bank boards are mulling how to reward employees for their efforts during the Covid-19 crisis while keeping a lid on expenses in an uncertain and challenging operating environment.
BOLI can be one of the most attractive assets on the bank’s balance sheet, but a policy is only as strong as its insurance provider.
The current crisis reinforces the need for talented employees who fit into a bank’s culture and can move the bank forward.
Most major BOLI carriers expect “business as usual” for purchase activity in 2020, but may find difficulty in reproducing yields close to their current portfolios.
Boards should not wait for a Democratic president to ensure their compensation plans and processes are sound.
Strategically designed compensation programs can help banks avoid the lost revenue and increased expenses associated with losing and replacing key employees.