We are constantly seeking new ways to demonstrate how our creative tax-efficient planning strategies can help a potential client. If you’ve listened to our podcast, you may know a bit about what we do, specifically we talk about SERPs for Executives of Credit Unions in episode 7, so feel free to check that out on your time, remember to subscribe! Another big chunk of our marketing beyond the pod is using this blog to demonstrate some specifics on work that you may or may not do with us. We are always looking to help and know that we can, it’s just a matter of getting in front of the right people. So if anything you see here today could help you or someone you know, please don’t hesitate to reach out! The first step is always just a quick chat.
Here are 5 Reasons your company or organization may want to reassess Supplemental Executive Benefits in 2021
2021 has been a bit better than 2020, but everyone has been effected. Your business surely has been effected in some way or the other. For Credit Unions specifically, and C-suites of those FCUs, it may be a few months or even a few years to see how the pandemic will be fully effected. By looking at your supplemental executive compensation program now, you can help your chances of coming out of 2021 with an even better team of executives.
A SERP refers to a supplemental executive retirement plan that includes Retirement, Retention, and Recruitment. Here are a few scenarios that could make you feel like it’s time to reassess.
1. Executives Retiring Early
If you have a somewhat clear line of succession for your executives, that line may have changed after the pandemic. The pandemic and resulting stress and loss of life has changed circumstances for many execs and their families. If all of this change even causes one exec to retire, this could start a domino effect of hiring. Offering a SERP can help you compete with commercial institutions that may offer stock options and other perks that aren’t available to FCUs.
To help with continuity and perhaps some of the younger talent moving up the ranks, a proper SERP can help retain them and keep them from finding a more lucrative deal elsewhere.
2. Executives That Were Going To Retire, Aren’t.
This could happen for many reasons. Change in the organization could force someone who was planning on retirement pre-pandemic to stick around to keep the business churning. Perhaps the board asked a particularly valuable exec to help get back on even footing until things settle down. Retirement investments could be underperforming, or the exec could have taken a hard hit financially during 2020-21. The portfolios could need adjustment and force people to work longer than intended.
SERPs can provide additional benefits and clean up retirement plans or existing life insurance policies more reliant on market.
3. Leaders Rise to Occasion
When faced with adversity, leaders tend to rise to the top. Adversity can demonstrate willpower and creativity and ingenuity, and perhaps you may have a few rising stars who helped your company through the darkness.
What a better way to reward quality work than with enhanced SERP benefits to incentivize and inspire?
4. New Normal
Perhaps things have changed around your business. Processes and responsibilities have been forced to adjust with changes to work, commerce, business and communication. Getting back to normal is seeming less and less realistic. Changes to how your employees work, where they work, and how much they work may have changed operationally due to the pandemic.
The organization will follow suit, so what better time to take a deeper look at what you could be doing for current and potential employees and executives?
5. Growth
2020 and 2021 haven’t been exactly rewarding to anyone, but in the world of business you may be benefitting from a new world. Some companies fell on the sword but if you’re reading this far your still clearly battling. Whether you are trying to avoid losing talent, or can tell you’re going to need some in order to deal with growth, it’s ALWAYS a good time to meet with an unbiased pro to let you know what you could be doing for your execs and employees.
It’s ALWAYS a good time to know what you could be doing!
If you have any questions about Supplemental Executive Retirement Packages, please reach out via our contact form or give us a call! We are open to meeting and sitting down to see if and how we can help you! Remember to stay tuned to the blog and subscribe to the MBK Beat Podcast for constantly new content!