Pub. 6 2016-2017 Issue 6

O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S May • June 2017 15 executive’s ability to compete for a specified period af ter separation from ser v ice. The for feiture and/ or non-compete provisions can be powerful tools in retaining your key officers over the long term and in enhancing growth and profitability. The goal of any institution is to keep the core team together and to supplement that team through hiring, training and recruiting. Both the work environment and compensation arrangements are critical factors in achieving this goal. Nonqualified plans can and should be tailored to the person and the circumstances rather than using a cookie-cutter approach. Such plans are typically financed with bank-owned life insurance (BOLI), which can help offset and recover a portion or all the expense. Even if the bank is not able to purchase enough BOLI to accomplish that objective, the incremental cost should be weighed against the lost revenue or cost that may result if one or more of the key team members leaves. Equias Alliance offers securities through ProEquities, Inc., member FINRA & SIPC. Equias Alliance is independent of ProEquities, Inc. David Shoemaker, CPA/PFS, CFP®, is a principal of Equias Alli - ance, which through consultants has assisted over 800 banks in the design of nonqualified benefit plans, performance based compensation and (BOLI). To learn more, contact David Shoe- maker at 901-754-4924 or dshoemaker@equiasalliance.com. The goal of any institution is to keep the core team together and to supplement that team through hiring, training and recruiting. Both the work environment and compensation arrangements are critical factors in achieving this goal.