Retaining talent is one of the greatest challenges bankers face, along with adapting to their executive compensation plans in this changing economy. Bank leaders across the country are facing a familiar but intensifying challenge: economic unpredictability. With 93% of survey respondents revealing in the 2025 NFP U.S. Executive Compensation and Benefits Trend Report that they are unsure whether to expect a downturn or growth, the old playbook, relying on salary bumps and broad perks, is being rewritten.1 Instead, banks are turning to executive benefits as a more stable, strategic lever. As baby boomers retire and succession pipelines thin, the financial services sector is feeling the pressure. 54% of key employees are delaying retirement, up from 44% just a year ago.1 This shift isn’t just about demographics; it’s about continuity, leadership and the future of banking. In addition, a high priority for bankers is recruiting new talent. Bankers who participated in the 2024 Pearl Meyer National Banking Compensation Survey2 indicated that the top positions they are planning to recruit included the following: Position Percentage Commercial Lenders 72.1% Top Executives (e.g., C Suite) 25.6% Compliance Management 20.9% Technology Management 18.6% Risk Management 16.3% Wealth Management 7.0% Other 9.3% 2025 Pearl Meyer National Compensation Survey Report Compensation is one of the most important drivers of success in recruiting key talent, particularly in a tight labor market. Comprehensive compensation plans that are successful in landing key talent include not only an attractive base and performance bonus plan but also tailored mid- to longer-term incentives, nonqualified benefit plans and other executive benefits. See the following chart about executive benefit plans regarding the impact of the success of these plans, especially related to nonqualified benefit plans, where 82% of respondents of the NFP Executive Compensation and Benefits Trend Report indicated a high/moderate impact of plan success. Benefits Offered Percent Offered High/Moderate Impact on Plan Success Nonqualified Deferred Compensation Plans 69% 82% Performance-Based Incentive (Short or Long-Term) 64% 91% Employment/Severance Agreements 38% 69% Signing Bonus 37% 72% Fringe Benefits (e.g., First-Class Air Travel, Legal Planning Services) 31% 69% Supplemental Executive Life Insurance 28% 75% Stock/Equity 27% 88% Supplemental Executive Disability Coverage 26% 45% Split-Dollar Life Insurance 24% 69% Financial Planning/Wealth Management 18% 55% Long-Term Care or Hybrid Life With Long-Term Care 10% 54% Supplemental Executive Medical Insurance 9% 65% Loans to Buy/Payback Stock, a Home, Loans, Other Debt, etc. 8% 40% College Tuition for Children 2% ** 2025 NFP U.S. Executive Compensation and Benefits Trend Report Compensation and Executive Benefits STRATEGIES FOR ATTRACTING AND RETAINING TOP TALENT By Ken Derks, Consultant, NFP Executive Benefits Colorado Banker 6
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