Background

CourseMark established a strong relationship with a Midwest-based credit union facing challenges in retaining its CEOs. Several CEOs had departed for higher-paying opportunities elsewhere, creating a pressing need for an effective retention strategy. The credit union sought a solution to both retain and reward the individual capable of successfully managing their organization.

Inovation

CourseMark met with the Credit Union CEO, and completed a fact finder to determine what the shortfall of the executive was, and what would provide a meaningful retention benefit to the executive.

Resolution

CourseMark then built out a program that will be a great benefit both to the executive and the credit union. It will provide income to the executive, death benefit to the executive’s benefeciaries, recoup the initial investment to the CU, and book interest on the loan for the credit union as well. Best of all, as it is a deffered comp plan, it is entirely tax free to both the executive and the credit union.

Reward

This program creates a win-win scenario for both the credit union and the executive. For the credit union, retaining a skilled leader means reducing the high costs associated with turnover and ensuring stability, while also recouping the initial investment and earning interest income. For the executive, receiving tax-free income translates into a more attractive and competitive compensation package. Overall, the solution aligns the interests of both parties, ensuring sustained leadership and financial benefits for the organization alongside enhanced personal rewards for the executive.

What Does this Mean for YOUR Credit Union?

CourseMark meets Credit Unions right where they are now. This solution from CourseMark could be highly meaningful to a credit union by addressing both leadership retention and financial stability. Credit unions often face challenges in retaining top executives, especially when high-paying opportunities arise elsewhere. By implementing a tailored deferred compensation plan, CourseMark helps ensure that skilled leadership remains in place, reducing the costs and instability caused by turnover. The program also benefits the credit union financially by recouping the initial investment and earning interest income, all while offering tax-free advantages to both the executive and the organization. This win-win scenario not only strengthens leadership continuity but also enhances the credit union’s bottom line and overall organizational health. Connect with us today to see if there could be a meaninful solution for your Credit Union!