Committees : Compensation
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.
Choosing the right compensation plan is an important step in attracting, retaining and rewarding rising leaders.
Recruiting and retaining top talent will never be easy. But being flexible and experimenting with new approaches is one way to increase the odds of success.
A combination of low interest rates, high compliance costs and customer migration toward digital banking channels has led the leaders of two banks to radically transform their institutions.
The compensation committee is central to talent development and succession management at your bank. Its name should reflect that.