Client Solutions Top Bar
Client Solutions Bottom Bar

Executive Incentive Retirement Plan (EIRP)/Director Incentive Retirement Plan (DIRP)

  • An annual deferred award will be made to participants if the organization exceeds certain pre-determined benchmarks on an annual basis. Examples of benchmarks are return on equity, return on assets and net income.
  • Interest is credited on each participant’s account (i.e. prime rate).
  • The accumulated account balance will be paid out to the participant upon retirement from the bank over a 5, 10 or 15-year period (with interest), or in a lump sum, at the discretion of each participant.
  • Amounts deferred are not taxable income to the participant or heirs until actually received.
  • Full pre-tax amounts that are deferred earn interest that is compounded without current taxation.
  • Each participant has an individual agreement that specifies:
    - Annual award criteria
    - Interest crediting
    - Payout duration
    - Death benefits
    - Disability
    - Change of control protection
    - Vesting