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Executive Compensation Plans - Taking care of Business means taking care of the Employees that make your company or organization a success! The success of your business may very well rest on the unique skills and abilities of a core group of 'Key Employees' who would be very difficult to replace. What would happen to your business if one of your top-performing executives left today? Would your business continue to run smoothly, or would projects be stalled, customers lost and productivity reduced? Most important, how would this loss affect the bottom line of your business?
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Many business owners don’t realize that talented topnotch employees are one of their most valuable assets. Consider the time and money spent recruiting key executives. Then consider the expertise they have gained during their employment with you.
When a top performer leaves, chances are your business will be affected. With today’s highly competitive business environment, replacing that person may not be easy. As a result, many companies are looking for new ways to recruit and retain top performers. A carefully structured benefits package can provide a strong incentive that will keep key executives committed to your company. And help attract new talent, which will strengthen your overall management team for years to come.
With the 'D Word' (Deficit and Debt) back on Capitol Hill with a vengeance, Congress is looking for every way possible to generate revenue. Therefore the Treasury Department has been attacking Split Dollar, Deferred Compensation and any other arrangement where additional revenues could be generated. Passed by Congress in October 2004, the American Jobs Creation Act of 2004 is designed to primarily repeal certain export subsidies and create a new set of tax breaks for American industries and farmers. But the new legislation also includes a less publicized provision that substantially alters the taxation of non-qualified deferred compensation plans. Therefore all Non-Qualified 'Deferred Compensation and Salary Continuation' arrangements, 419 Plans, etc. need to be reevaluated in light of the recently enacted new laws. Please review highlights of the act by clicking here or on the left toolbar.
CAUTION is the key word when considering implementing ANY 'Deferred Compensation', 'Salary Continuation', or 419 Plan. Competent legal and tax council MUST first be consulted.
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Reward Key Executives with Non-Qualified Plans - Non-Qualified Benefit plans can help retain and reward top executives by enhancing their benefits above and beyond what is provided by the company to other employees. We sometimes refer to these plans as 'Top Hat' plans, because they are on top of all other benefit plans. Studies show that topnotch executives and talent prefer these types of programs, over just another salary increase. These plans have much more appeal, as they provide a meaningful and needed benefit. Instead of another pay raise that is consumed with an increased standard of living, or another vacation!
Consider the benefits package you currently offer. How does it measure up when compared to other companies in the same business? Does your plan provide attractive retirement, life insurance and disability benefits? Now, consider the priorities and needs of your top executives and those you’d like to attract. Like most people, they probably have concerns about economic changes and how they’ll be affected in years ahead. And they probably share the worries of most people when it comes to financial security. When your executives are secure in their financial well being, they’ll focus more on your business and less on financial worries.
Unlike most benefit plans, Non-Qualified employee benefit plans can be SELECTIVE regarding who is covered by the plan. These plans offer a business additional means of providing retirement, life and disability insurance benefits over and above what is provided by the company's standard benefit plans.
Click on the links below for more details regarding the Non-Qualified Plans available:
In today’s competitive market, smaller companies are finding that 'Non-Qualified' plans can be customized to address the specific needs they have for long-term success. However, careful consideration must be given when designing a non-qualified employee benefit plan, as there are tax considerations and other criteria to consider.
Kelley Insurance & Financial has the knowledge and expertise to design and implement a Non-Qualified Executive Compensation plan for your company. Make an investment in your business that pays dividends for years to come increasing your bottom line profitability. We have relationships with top Metro area law firms that specialize in preparing any necessary legal documents such as Deferred Compensation or Salary Continuation Agreements. Call our office today or click on the quote request link on the left toolbar in order to obtain a quote.
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