Expertise - Key Employee Retention and Reward Plans

Executive Benefits

Executive Benefit Plans (aka SERPs) are considered as Non-Qualified arrangements by the IRS. Thus, not only can you “discriminate” within your organization as to who gets to partake in one of these programs, but more importantly, you can customize each individual plan, to the key employee in question, in order to maximize the purpose/intent of offering it in the first place.

Executive benefit plans are used by organizations to protect their human capital. In addition, studies show that over half of the executives in the Non-Profit Industry are expected to retire within the next 5 years. Therefore, Boards and executives list retention, succession, recruitment, and retirement as top concerns for the long-term viability of their respective organizations.

With over 75 years of combined experience working with Non-Profit Organizations, Modern Capital Executive Solution’s expertise and mission is to give you the tools to optimize your talent pool while maintaining financial stewardship. Executive benefit plans include a variety of plan types, including:

Nonqualified deferred compensation plans – IRC 457(f) and 457(b)

Loan Regime Split Dollar & Collateral Assignment Split Dollar – IRC 7872

  1. Performing assets with a positive yield annually to the bottom line (vs. all other Exec. Benefits which are a straight line cost to the organization)
  2. Provide tax free income to the Executives in question, upon vesting and reaching their respective benefit dates

Incentive and Bonus Plans - IRC 162 and 83 Restrictive Bonus Arrangements

All of these plan options can be funded by the Employer, Employee, and/or Both.

Interested in Learning More?

The best way to get started is to schedule an informal discovery call where we discuss at a high level your challenges and what you wish to accomplish.

Our client relationships often start with an educational session (which may include your leadership team, board of directors, or both) to explain how the different types of plans work.

Ready to send a RFP/RFI? Interested in an informal discovery call and/or educational session?