Executive benefit plans (also referred to as non-qualified plans) are benefit programs offered only to a company’s upper management group or highly compensated employees. Typically, plans are designed to achieve one or more of the following objectives.
- Retain key executives
- Reward key executives
- Recruit key executives
We work with businesses to identify which executives are to be covered, what is to be accomplished with the plan, which plan design is most suited for the specific situation and what financing alternatives may be available to help offset the cost of the program.
Three primary plan designs available include
- Defined benefit – Specified benefit is paid for specified number of years
- Defined contribution – Specified amount is invested for specified number of years
- Incentive based program – Benefit or contribution is based on executive or company achieving stated objectives.
The key to a successful program lies with the design, communication and administration of the plan. This is not a product that is purchased, but a planning process.