Deferred Compensation Plans

Identifying and hiring the best employees, especially executives, is a lengthy and time-consuming process. Once you’ve identified the right people, you need to offer compensation that convinces those employees to stay with your company.

Deferred compensation plans can deliver, especially for highly compensated employees. With a deferred compensation plan, your business creates a contract that details the compensation an executive will receive at a later date—if conditions are met. Your business retains control of payouts, while your employee receives monetary rewards and tax benefits. Customized deferred compensation plans work for your business while providing an incentive for executives to perform long term.

Deferred Compensation PlansAre a Win-Win

Bring benefits to your business and highly compensated executives.

Benefits to Your Business

Reward hard-to-find, highly compensated employees.
Customize plans to fit your business and participating employees.
Dictate terms to accompany the compensation, such as non-compete agreements.

Benefits to Your Employees

Receive compensation to match their value to your business.
Save on taxes by deferring payments until later or upon retirement, when they may be in a lower tax bracket.
Determine how funds are invested, subject to available plan options.

Make sure your valuable executives have no reason to look for employment elsewhere. By creating a deferred compensation plan, you dictate the terms under which you provide the top-notch pay your executives deserve, and executives are rewarded for their loyalty with generous compensation and tax benefits.