The components of an executive compensation plan vary widely across companies.
How incentive vehicles are structured and implemented vary even more widely. Executive benefit plans are a crucial component of any corporate benefits strategy. They can provide:
- Replacement income at retirement based on total (non-limited) compensation
- Reward, attract and retain key executives
- Replace benefits lost due to IRS limits on qualified plans
- Provide benefits in addition to those under qualified plans
- Defer compensation
- Provide enhanced benefits in the event of an acquisition or other change of control
Superior executive compensation packages blend both the needs of the individual and the company, and many time are integrated with company-paid executive financial planning.
There are many types of Executive Benefits Plans to consider including:
- Deferred Compensation Arrangements
- Benefit Equalization Plans
- Supplemental Executive Retirement Plans
- Stock Options and Phantom Stock