Expertise - Key Employee Retention and Reward Plans
Executive Benefits
Supplemental Executive Retirement Plans (SERPs) are considered Non-Qualified executive benefit arrangements. Unlike qualified plans, like 401(k)s or 403(b)s, employers may choose to only include key people. SERPs are highly customizable to meet the individual goals of the key person being rewarded.
Executive benefit plans are used by for-profit and non-profit organizations to protect their human capital. Studies show over half of American executives are expected to retire within the next five years. As a result, directors and executives alike list recruitment and retention as their top concerns when looking to the future.
With over 75 years of combined experience in this specialization, Modern Capital Executive Solutions will guide you toward keeping and growing your talent pool while maintaining the safety and soundness of your balance sheet.
Non-Qualified Deferred Compensation Plans for For-Profits - IRC 409A
- Plans subject to 409A are informally funded and usually supplement 401(k) savings
- Plan design can be broad and flexible
- Utilized as a benefit to your highly compensated people
Non-Qualified Deferred Compensation Plans for Non-Profits - IRC 457
- A supplement beyond traditional benefits like 401(k)s and defined benefit pension plans.
- Utilized for short term recruitment, retention, and to reward existing key people.
Loan Regime Split Dollar (LRSD) & Collateral Assignment Split Dollar (CASD) - IRC 7872
- The benefit is designed to also be a performing asset to the bottom line.
- Most other executive benefit plans are an expense, not an asset.
- Utilized for long term recruitment, retention, and to reward existing key people.
Incentive and Bonus Plans - IRC 162 and 83 Restricted Bonus Arrangements
- These plans combine the short term commitment of 457 plans and some 409A plans, and the rich benefits to employees of split dollar plans.
- Plan design is simple and flexible.
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?