Broker Check

Executive Benefits

Deferred Compensation

Deferred Compensation has always been one of the most popular executive benefits.  While Sarbanes-Oxley changed and limited some of the options available it also better defined the rules.  While the new rules and regulations require more compliance in drafting these plans they have also removed a lot of the uncertainty that previously existed.  Like all Executive Benefits these plans are intended to reward top executives and to keep them from leaving the company.

Section 162 Bonus Plans

These plans are also very popular with many private companies.  They are very easy to implement and manage and they are not subject to company creditors.

Business Owners use them to increase their own compensation and the plans can also be used with restrictive endorsements to retain key employees.

Split-Dollar Insurance Plans

These plans have changed significantly under the new regulations, but in particular situations they can still be very effective.  Economic-Benefit Split-Dollar

(COLI – Corporate Owned Life Insurance) is used to fund many of these plans. If managed properly, they can be very effective.

Important:  This material is for educational purposes only.  In all cases, the approval of a client’s legal and tax advisors must be secured regarding the implementation or modification of any planning technique as well as the applicability and consequences of the new cases, rulings, or legislation upon existing or impending plans.