How CourseMark Helps Banks with Executive Retention Programs

CourseMark specializes in helping banks design and implement executive retention programs that strengthen leadership stability while enhancing the institution’s financial position. These programs—typically structured using split-dollar life insurance plans—serve as powerful tools to retain top executive talent by providing long-term, tax-advantaged compensation.

Benefit to the Bank
For banks, retaining key executives is crucial to long-term success. By partnering with CourseMark, institutions can offer compelling nonqualified benefit plans that align executive incentives with the bank’s goals. These programs increase executive loyalty while offering deferred compensation that becomes more valuable over time.

Interest Booked
One of the financial advantages to the bank is the ability to book interest income on the policy loan, which is recorded as a performing asset. This improves the bank’s financial metrics while the plan is in place. The interest is credited annually, and the arrangement is typically structured to have a neutral or positive impact on the bank’s income statement.

Recourse to the Bank
These plans are designed with limited or no financial recourse to the bank. In the event of an executive’s departure or policy lapse, the structure allows for policy recovery or minimal loss exposure. CourseMark ensures that plans are compliant, cost-efficient, and aligned with the bank’s balance sheet needs. To put it simply, the bank is protected at all times through what is defined as the plan document vesting schedule, allowing the bank to determine when the ownership of the program will be turned over to the executive as a reward for their years of service.

With deep experience in the financial services industry, CourseMark provides a turnkey solution that helps banks reward their top executives, strengthen retention, and maintain financial discipline.