How to Help Business Owner Clients Slow the Executive Exodus

In fact, a recent Nationwide survey found that more than a quarter of business owners said this was a top workforce challenge over the past year.

Beyond rank-and-file workforce challenges, senior executive turnover is rising rapidly: 56% of C-suite leaders say they're likely to leave their current role in the next two years, and 27% say they're likely to leave in the next six months, according to Gartner.

Even more concerning, only 17% of these respondents said their reason for leaving was due to retirement.

Losing executive talent can be a major hit for business owners.

Benefits consultant NFP, an Aon company, estimates it costs between 200% and 400% for each hundred thousand dollars of compensation to replace a C-suite executive.

Executive turnover can also lead to a loss of institutional knowledge, lower morale among remaining employees, and ultimately, a weaker position among competitors.

In other words, it's cheaper to invest in retaining key talent than replacing them.

Perhaps most concerning is the fact that even though business owners recognize the challenge of attracting and retaining top talent, many are trying to navigate this problem without expert financial advice.

Nationwide's survey found just 16% of small-business owners and 27% of mid-market owners met with their financial professionals in the past year for guidance on reducing future risk, and even fewer hired a financial advisor (13% and 19%, respectively).

The Solution

Here are three ways you can help your business-owner clients address the challenge of attracting and retaining key leaders, while positioning yourself as an invaluable resource.

1. Benefits programs for top talent: Business owners recognize that good benefits programs are a crucial step in attracting and retaining talent, with 20% saying improving employee benefits is one of their biggest business opportunities over the next year, according to Nationwide's survey.

For clients focused on their top employees, you can help them informally fund executive benefit programs through business life insurance policies like corporate-owned life insurance.

COLI is a life insurance policy taken out on critical employees, with the business serving as the policy owner and paying the insurance premiums.

Standard medical, dental and vision benefits aren't enough to differentiate most businesses.

However, COLI's institutional pricing can fund non-qualified deferred compensation plans or supplemental executive retirement plans.

Both NQDC plans and SERPs promise future financial benefits that encourage executives to stay at a company for the long term.

In addition to offering financial benefits for business owners, COLI is also a great way to attract and retain top-tier talent by rewarding key employees in ways that may differentiate your client's company from its competitors.

2. Financial planning for senior executives: Executives value long-term wealth building, not just salary.

In fact, according to Nationwide's survey, 37% of business owners increased wages over the past year, and four in 10 expect to raise wages again in 2026, even as C-suite executives continue to leave.

While everyone appreciates a raise, salary alone may not be enough to ensure retention.

Additionally, highly compensated employees often face complex financial situations, including high marginal tax brackets, stock compensation and concentrated equity risk.

While a Forbes Insights and Northern Trust survey of 500 corporate officers found 75% of C-suite executives described themselves as knowledgeable about wealth planning and investment management, fewer than 20% said they manage these areas themselves.

Instead, they prefer to work with experienced professionals to manage their plans and strategies.

Executives deeply value personalized financial guidance, so talk with your business-owner clients about offering portfolio management or retirement-readiness modeling to improve retention of senior leaders.

3. Succession and continuity planning: Top executives are more likely to stay when they see stability, a clear corporate vision and a defined future for their career path.

Work with your business-owner clients to build clear succession plans and incorporate long-term corporate financial planning.

This is another area where COLI policies can be beneficial.

COLI can fund buy-sell agreements, providing the cash necessary for businesses to buy back shares if an owner passes away, ensuring a smooth transition without draining operating capital.

Business owners can't afford to treat executive retention as an afterthought.

The data is clear: turnover at the top is accelerating, financial consequences are steep, and wage increases are no longer enough to keep the most talented leaders in place.

This is where financial professionals can make a critical difference.

You can help business-owner clients strengthen their executive benefits, implement personalized financial planning resources and build sound succession and continuity strategies.

Solutions like corporate-owned life insurance can improve retention, support your clients' long-term business health and reinforce your value as a trusted financial partner.

Jessica Dowdy is head of institutional life insurance at Nationwide Financial.

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