Pub. 5 2015-2016 Issue 5

18 O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S FEATURE ARTICLE With over 30 years of history, BOLI has proven to be an effective tool to help offset and recover benefit expenses. DAVID SHOEMAKER & KEN DERKS, EQUIAS ALLIANCE P rivately held banks, including Subchapter S banks as well as mutuals, are no differ- ent than publicly traded banks in their efforts to provide meaningful compen- sation plans for their key officers. Privately held banks must compete with public banks when at- tracting and retaining key officers and producers. Publicly held banks typically offer re- stricted stock or incentive stock options to key employees. This is much more difficult for privately held banks due to a lack of available shares or illiquidity of the stock. Therefore, privately owned banks competing for talent often require more creativity. Compensation for Privately Owned Banks: What to Know