Attracting and retaining a key executive can be vital to the success of any banking organization. Bank owned life insurance (BOLI) provides a cost effective method of rewarding key employees. The additional income produced by a BOLI life insurance plan can be used to offset current plan costs or to enhance non-qualified plans for key bank executives, such as:
- Deferred Compensation Plan
- Salary Continuation Plan (SERP)
- Incentive Compensation Plan
- Phantom Stock Plan
- Group Life Carve-Out Plans
Understanding the various compensation arrangements is often useful in determining which one best suit the banks objectives.