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Executive Benefits

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Support For Your Executive & Key Employees

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. Executive employees want to enjoy a rewarding, worry-free retirement, pay for their children’s college education, and establish sound financial security. They participate in retirement programs to help make these dreams realities.

Due to government limitations, executives may not be able to achieve these lifestyle goals through your current benefit programs. An advisor will carefully evaluate current costs and benefits, and explore possibilities for better, more efficient programs that may help your executives reach and protect their financial goals

EXECUTIVE COMPENSATION AND BENEFITS

Crafting an executive benefits package that stands out is crucial for attracting and retaining highly compensated employees. An exceptional executive compensation benefits plan goes beyond standard 401(k) plans, focusing on the unique financial and retirement needs of your senior executives.

A well-designed benefits package not only supports senior executives in achieving their financial goals but also emphasizes the company's commitment to their long-term financial success and well-being. With strategic planning, the right executive compensation and benefits plan can make a significant difference in securing the loyalty and motivation of your most valued employees, helping to ensure they remain integral parts of your organization's growth and success.

Funding Executive Benefit Programs

In tailoring executive compensation packages, consider the specific needs of top executives and ensure that these packages are not only comprehensive but also strategically aligned with the company's financial health and objectives.

Funding executive benefits is often done using company cash, taxable investments, institutionally priced life insurance contracts, or a combination thereof. The executive benefits programs you want or need to attract and retain your key employees may make buying corporate-owned life insurance (COLI) a smart financial strategy. We can help you figure out if COLI is right for your organization.

Executive Benefits FAQs
What are the key components of an executive compensation plan?

An executive compensation plan typically includes salary, bonuses, stock options, nonqualified deferred compensation plans, supplemental executive retirement plans (SERPs), and other retirement benefits, all designed to reward and motivate senior executives and key employees based on performance.

How do nonqualified deferred compensation plans benefit highly compensated employees?

Nonqualified deferred compensation plans allow highly compensated employees to defer a portion of their income, and therefore income tax, to a future date. Deferring their income to the future, typically after retirement, provides them an income after leaving the workforce and can reduce the tax amount on that income if they are in a lower tax bracket at the time of the deferred income payment.

What makes supplemental executive retirement plans (SERPs) unique?

SERPs are unique because they offer customized retirement benefits to senior executives beyond those provided by standard retirement plans, helping to address retention and motivation without the constraints of broad coverage rules necessary for tax-qualified plans.

How can funding executive benefit programs support top executives?

When employee stock options and 401(k) plans are not enough for highly compensated employees due to government limitations, executives may not be able to achieve their lifestyle goals through standard benefit programs. Funding executive benefit programs helps ensure that top executives receive tax-efficient executive compensation packages that support their financial security and retirement goals.