Executive Summary:
This white paper examines the quandary facing the boards of the nation's mid-sized and larger credit unions in developing a deferred compensation program for their CEO and other highly compensated executives. We examine why long-term compensation and retirement plans are gaining increased attention and the options credit unions have at their disposal to fund an executive retirement program that is proportionate to that of other employees and competitive in the field. In addition, we discuss the challenges of determining the current "market rate" for funding deferred compensation programs and provide a snapshot of the status of federal regulations in this area. The text offers a step-by-step overview for developing the multiple components of a deferred compensation plan, as well as a case study of the process featuring USA Federal Credit Union.
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