Executive benefits plans are non-qualified plans that provide supplemental retirement benefits for a group of employees, typically executives. Unlike qualified plans, they come with zero coverage, eligibility, or participation requirements, so you can provide rewards and incentives with maximum flexibility. These executive benefits can help to provide motivation while employees are working towards retirement, improving overall business performance.
How Executive Benefits Can Give Companies An Edge
A well-tailored rewards package for key executives can help you recruit and retain top talent for your most important positions in terms of company growth. A standard 401(k)may be adequate for the average employee, but it leaves high-income earners needing additional savings routes to stay on top of their retirement goals. Offering a superior option that is designed specifically for your top players is something that will attract the best talent — and encourage them to remain with your company.
Your company can attract top talent by demonstrating that you can support their needs by offering a competitive executive benefits package. In addition to attracting and retaining high-quality employees, these plans can also serve as an incentive to encourage greater performance. When top executives feel valued by their employer, it can inspire them to work harder to advance the company’s interests.
Who Is Eligible?
Businesses are required to offer qualified plans to a nondiscriminatory group of employees, but nonqualified plans like executive benefits can be offered to a specific subset of employees. These plans must be designed to cover a group of highly compensated employees and/or members of the management team.
Job titles that are eligible include president, executive or senior vice president, chief financial officer, chief executive officer, treasurer and general counsel, although other employees may also be eligible depending on their responsibilities and compensation.
Components Of Executives Total Compensation Package
An executive’s total compensation package will include components such as a basic salary, short-term incentives, long-term incentives and perquisites. Here is a closer look at the main components of an executive compensation program.
Short-term Incentives
Short-term incentives are typically incentives that are awarded on an annual basis and reflect the employee’s position. For example, higher opportunities relative to salary are generally reserved for higher-level positions.
Long-term Incentives
Long-term incentives are typically awards or grants that are given to employees with payment that is based on their performance for a period spanning longer than one year. These may include performance-based grants, stock-price appreciation grants, and restricted stock or cash grants.
Benefits/Perquisites
Finally, an executive total compensation package will include a variety of benefits and perquisites. These may include offerings such as housing accommodations, the use of company cars, club membership and spouse travel.
Where New City Can Help
New City Insurance can help you see the big picture when it comes to strategic discussions involving your executive compensation. New City’s specialized team will help you structure customized plans tailored for your business’ unique needs.
We understand that not all companies are the same, so we offer the best executive benefits plan for you. These benefits plans can include different areas depending on the makeup of your workforce and the needs of your business.
New City Insurance offers executive benefits plans that include areas such as:
- Deferred Compensation Plans
- Selective Retirement Plans
- Asset Allocation
- Wealth Planning
The loss of a key executive could have a devastating impact on your company. Introducing executive benefits helps you stay on top of the competition, and New City’s programs can support and reward your leadership for a job well done.
Talk To New City About Executive Benefits
Attracting and keeping talented executives can be difficult in today’s competitive business environment, but a proper executive benefits plan makes it easier to position your company as a desirable place to work.
As the top positions in a company, executives are highly sought-after and motivated to find the best opportunity for themselves. At New City Insurance, we can provide you with valuable insight on the benefits that executives in your industry seek and how you can fit these offerings into your budget so you can attract leaders who will drive your organization to greater success.
Innovative and experienced leaders are at the heart of every successful company, but attracting and maintaining them can be a significant challenge. New City Insurance offers proven solutions that can help your company excel in this area. Our executive benefits are designed to attract only the top, most premier prospects for executive positions. These benefits are attractive and flexible and can encourage the executives you worked so hard to recruit to stay loyal to your company for many years to come.
Are you ready to take your business to the next level? Reach out to New City today by calling us at 888.210.2759, or by requesting a consultation online. Keep your business strong and growing by investing in executive benefits.