Bank Directors Seminar, Coeur d'Alene, ID

Incentive Deferred Compensation Plan • Bank contributes a specific dollar amount or percentage of salary each year • Bank contributions are discretionary or dependent on meeting budget or other goals • The contributions may vest over 3 to 10 years • Participant deferrals allow further tax-deferral • Interest is credited to the account balance (rate could be tied to an external index or an internal index such as bank ROE) Objectives of Incentive Deferred Compensation Plans • Link component of senior management’s compensation to the long-term succ ss of the ba k • Increase bank performance and shareholder value • Reward officers for long-term performance 11

©2018Equias Alliance, an NFP Company

©2018Equias Alliance, an NFP Company

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