As the talent wars continue, community banks can come out ahead with a careful focus on executive compensation and benefits. In addition to a competitive annual salary and bonus, community banks need to offer an appropriate mix of short- and long-term incentives, compensation consultants say. They advise using the more modern approach of tying compensation to the individual as opposed to a one-size-fits-all model.
"Community banks need to consider the age and demographics of future leaders they are trying to attract and retain and design compensation based on those needs," says Karen Butcher, managing director of executive compensation and leadership consultancy Pearl Meyer.
Other critical components including executive coaching and leadership development opportunities, must be a part of the mix, Butcher says. "Otherwise, it doesn't matter what you're paying them."