A Guide to Executive Benefits | Know Before Negotiating

A well-designed and implemented executive benefits program will provide incentives that will attract new executives and retain talent. The business environment is always competitive and even more so right now.

Having an executive benefits program is an essential part of recruiting top-tier talent to help your company grow and profit. That’s why we have created this guide to executive benefits.

Executive Benefits

Here at Argent Bridge Advisors, we design, implement and administer executive benefit plans that enable you to reward key employees and top executives in your company. Our experienced professionals create plans that are cost-efficient and supplement qualified retirement and group insurance plans that are typically restrictive in nature. Our plans are designed to help reach the personal needs and goals of executives without compromising the overall corporate financial goals of your business.

While employee stock options and programs like 401Ks are a good place to start, they aren’t always a great fit for the more talented executives. We believe that executive employees want a rewarding retirement, and this is gained by establishing sound financial options early. Therefore, we strive to be chosen as a trusted corporate advisor to help you explore new possibilities for better programs and carefully evaluate the benefits and costs involved. It is our goal to support you in helping your executives achieve their financial goals.

More than the 401K

The annual investment limit in a 401K is too restrictive for many executives. Deferring compensation can be a solution to the limitations of traditional qualified plans. Non-qualified deferred compensation plans allow deferral of various forms of pay including base, commissions, bonus, and special incentives, without the cap on the dollar amount saved or contributed. In many cases, this makes it easier for executives to pay for other important expenses such as the purchase of a home, or tuition payments.

Performance Pay and Disability Programs as Part of Executive Benefits

Stock options and bonus compensation has been emphasized so much that some executives may find their performance pay is not part of their current supplemental disability equation. Highly compensated employees typically fall short in plans designed to deliver a percentage of base pay “only” as disability benefits, even if the income is tax-free.

This is due to the disproportionate amount of total compensation arising from incentives, stock options, bonuses, and other forms of contingent compensation. However, supplemental disability plans are designed to give executives the opportunity to include these other sources of compensation.

Supplemental Executive Retirement Plans

SERPs can solve challenges with retention and motivation. This helps your company retain and reward executives who are critical to the continuity of your company’s success. They are a viable and popular alternative for top long-term executives who are concerned about the concentration of their post-retirement wealth in stock options. While there are risks, a SERP may permit executives to self-direct the return on their account balances.

Schedule an Appointment With One of Our Experienced Team Members

Our experience in compensation and benefits is the key to integrating individual benefits, such as pensions, retirement plans, stock options, and more, into your company’s comprehensive financial strategy. This maximizes the benefits of both parties. If you are interested in learning more about executive benefits for your company, please contact us online or hive us a call at (833) 568-4900 today!