Mike Welch's recent editorial on the advisability of employment agreements for credit union executives is well taken. In today's competitive market for securing top talent an agreement is in the best interests of both parties. It is beneficial for the executive to have employment security and for the institution to have the assurance that it will have the services of a valued employee. Further, in light of the increasing frequency of credit union mergers, providing employment security for the top management in the event of a merger can help facilitate a merger rather than impede it, a fact recognized by banks and thrifts years ago but perhaps only recognized by credit unions recently. Besides the examples provided by Welch, it is important for credit union executives to have security against not only actual termination, but constructive termination in the form of reduced responsibilities, lower benefits and similar attempts to effectively "terminate" the executive. Providing an agreement to accomplish these objectives raises many complex issues regarding a number of disciplines including, for example, providing deferred compensation through the use of "rabbi trusts" and the validity of non-compete clauses and should only be undertaken with the assistance of competent counsel. Richard Garabedian Shareholder Jenkins & Gilchrist Washington, D.C.

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