In addition, a high priority for bankers is recruiting new talent. Bankers who participated in the 2024 National Compensation Survey1 indicated that the top positions they are planning to recruit included the following: 1. SERPs According to the American Bankers Association’s 2024 Compensation and Benefits Survey, nearly 67% of banks report utilizing deferred compensation plans for key positions.2 These plans can include supplemental executive retirement plans (SERPs), providing a defined post-retirement benefit. SERPs are widely popular with baby boomers and Gen X. Unlike similar broad-based qualified plans, a SERP has no contribution limit or rules that mandate that all employees must be able to participate. They are purposely designed for highly compensated executives and key employees for whom the 401(k) contribution limits act as a form of “reverse discrimination” toward retirement. Also, SERPs are generally fully funded by the bank. 2. Strategic Deferred Compensation Plans These are used when a bank wants to create both a recruiting and retention incentive for top talent. A strategic and customizable deferred compensation plan (DCP) is fully funded by the bank. These are defined 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, non-qualified benefit plans and other executive benefits. Employers increasingly recognize and understand the link between well-designed executive compensation packages and overall organizational performance. Creating effective strategies for attracting and retaining key employees across multiple generations can be the game-changer that ensures your most valuable and strategic employees stay and thrive within your bank. It requires structuring compensation packages with flexible options in order to address varying generational priorities. The following are three strategies that your bank can implement to retain and reward top talent. Position Percentage Commercial Lenders 76.6% Top Executives (e.g. C Suite) 40.4% Technology Management 25.5% Risk Management 21.3% Compliance Management 14.9% Wealth Management 10.6% Other 10.6% 2024 National Compensation Survey Report 11
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