In competitive business environments, an executive benefits program is essential to recruit top-tier talent who will play an important part/role in your company’s growth and profitability. A well-designed executive benefits program offers incentives that help attract new executives and retain talent over time.
Let us help you with executive benefit plans that enable you to selectively reward key employees and top executives. Our cost-efficient executive benefit plans supplement qualified retirement and group insurance plans that are somewhat restrictive. We’ll help meet the personal needs and goals of executives within the context of the overall corporate financial goals of your business.
Employee stock options and programs like 401(k) plans are a good start, but they may not meet the financial expectations of the most talented executives. Like you, executive employees want to enjoy a rewarding retirement by establishing sound financial options early on.
Beyond the 401(k)
For many executives the annual investment limit of a 401(k) plan does not allow the deferment of enough income to adequately save for retirement. One solution to the limitations in traditional qualified plans, such as the 401(k), is to defer compensation. Non-qualifying deferred compensation plans allow deferral of various forms of pay, including base, bonus, commissions, and special incentives without a cap on the dollar amount saved or contributed. This opportunity may make it easier for executives to pay for other important expenses like tuition payments or the purchase of a second home.
Performance Pay and Incentives in Disability Programs
In an era that emphasizes stock options and bonus compensation, executives may find that their performance pay is not part of their supplemental disability equation. Highly compensated employees usually fall short with plans designed to deliver a percentage of ‘base pay only’ as disability benefits, even if income is tax-free. This is simply because of the disproportionate amount of total compensation arising from incentives, bonuses, stock options, and other forms of contingent compensation. We’ll help with supplemental disability plans designed to give executives the opportunity to cover other sources of compensation.
Supplemental Executive Retirement Plans
Supplemental Executive Retirement Plans (SERPs) help solve challenges with retention and incentive, helping keep and reward executives critical to your company’s successful continuity. SERPs are a practical and popular alternative for top long-term executives concerned about concentrating their post-retirement wealth in stock options. Although not without risks, a SERP may allow executives to self-direct the return on their account balances.