There are many different types of executive benefits plans designed to help you compensate and retain key employees.  The structure, type, and benefit level can all be customized based on your specific needs and the motivators and goals of the employee. 

Below are sample executive benefits and executive compensation packages you may want to consider offering your key employees:

Nonqualified deferred compensation plan

A nonqualified deferred compensation plan lets you set aside money to benefit specific managers. You can design this plan for employee pretax salary deferral, employer contributions or both. You can also specify when benefits are to be paid such as after so many years or at retirement.

Executive bonus plan

An executive bonus plan is a way to compensate select employees, regardless of their income and position, by paying a cash bonus to the employee or by directly purchasing an investment on the employee's behalf. The bonus is a tax-deductible expense to the employer and taxable compensation for the employee.

Supplemental executive retirement plan

A SERP is an arrangement that provides supplemental retirement benefits in addition to what is provided from a company's qualified retirement plan. The two reasons to put a SERP in place are (a) to make up for the qualified plan limitations on all employee retirement benefits, and (b) to provide a retention device to ensure a key employee stays.

"Key Man" or executive life insurance

Key executives who are highly compensated often have unique life insurance needs. To protect their families, they need a way to replace their compensation in the event of premature death.  This is also a strategy for protecting the company should a key employee suddenly become unavailable.

Key employees, managers, executives, officers, and owners may all be suitable candidates for supplemental compensation benefits and bonuses.  These plans are commonly referred to as "golden handcuffs", because they make it much harder for someone to leave your company.  

Implementing a plan can be more expensive and must be designed with your overall goals and budget in mind.  In addition, your business attorney, human resources manager, and tax professional should also be part of the process.

Contact us today to help design an executive benefit program that fits your exact needs.  You may only need something isolated for one individual and somewhat simple, or you may need a plan much more complex.  Step one is to define the problem, and then we can jointly design the solution.