During 2023 and early 2024, we engaged in numerous discussions with our clients regarding incentive plans. Many were concerned that these plans would not pay out at targeted levels. A significant factor in this concern was the performance of banks; many failed to meet their budget targets.

As the talent wars continue, community banks can come out ahead with a careful focus on executive compensation and benefits.

A decade ago, we were in the middle of an economic downturn, and the world of executive compensation was under intense scrutiny. One target for that scrutiny was executive benefits and perquisites. Things like excessive change-in-control payouts with “gross-ups” and perquisites like vehicle allowances and country club memberships were placed under the microscope.