As technology has grown in importance for credit unions, so has the need to retain your top information technology executives, says Brian Kidwell, executive vice president at D. Hilton Associates Inc.
Supplemental executive retirement plans (SERP), which complement traditional retirement plans such as the 401(k), serve as a powerful retention tool.
More than half of credit unions with $1 billion in assets or more now provide SERPs to C-suite executives other than the CEO, according to Kidwell.
Overall, about 50% of credit unions offer some form of SERP to their chief financial officer, while a sizable number provide a SERP plan to their executive vice president (44%), chief operating officer (38%), or chief information officer (35%), according to CUNA’s 2014-2015 Total Compensation Report-Senior Executive.
The SERP trend is poised to spread to other levels of management. Within the last year, many financial institutions have inquired about extending coverage to their vice presidents, Kidwell says.