Executive Benefits
Executive Benefits
Creating the right incentive structure to attract key executives and ensure they create long-term value for your company takes a strategic approach.
As a business owner, you may want to consider deferred compensation plans for yourself and your top-level employees.
Creating the right incentive structure to attract key executives and ensure they create long-term value for your company takes a strategic approach.
As a business owner, you may want to consider deferred compensation plans for yourself and your top-level employees.
Deferred Compensation (Golden Handcuffs)
Ensuring your management team has skin in the game goes a long way to inspiring loyalty and improving executive retention. Unlike qualified plans, these non-qualified plans are niche products that can be customized and offered individually to key executives.
At the OIS Group, we work with you to find the perfect balance between attracting and retaining key executives while also ensuring your benefits package is in line with the competition. Deferred compensation plans allow business owners to go above and beyond the limitations of qualified plans for their company officers and executives. Basically, the employer offers to provide supplemental retirement income to executives based upon specific conditions which could involve a commitment to work for the company for (x) years. As the executives vest over time, the option of leaving to go work somewhere else becomes less attractive.
Key Man Insurance
If your business’ success hinges on just a handful of people with key expertise and knowledge, insuring them against catastrophe can be the difference between your business thriving and struggling to survive.
Put simply, Key Man Insurance is just your company taking out a life insurance policy on key members of your team and listing your company as the beneficiary. The key to enacting a pragmatic Key Man Insurance policy is to look at who on your team is irreplaceable in the short term. If they were to leave, would business stop? If so, it’s worth considering getting a Key Man Insurance policy.
Additionally, building in a buy/sell agreement on how to handle the process if an equity partner dies or leaves the company doubly protects you.
Key Man Insurance
If your business’ success hinges on just a handful of people with key expertise and knowledge, insuring them against catastrophe can be the difference between your business thriving and struggling to survive.
Put simply, Key Man Insurance is just your company taking out a life insurance policy on key members of your team and listing your company as the beneficiary. The key to enacting a pragmatic Key Man Insurance policy is to look at who on your team is irreplaceable in the short term. If they were to leave, would business stop? If so, it’s worth considering getting a Key Man Insurance policy.
Additionally, building in a buy/sell agreement on how to handle the process if an equity partner dies or leaves the company doubly protects you.
Buy Sell Agreements
Building a plan on how to handle the day-to-day operations of your company in the event one of your equity partners dies or suddenly is overcome with a serious disability is essential to finding long-term success.
Too often, a business partner dies or is disabled and suddenly the rest of the ownership is sharing equity with the partner’s ex-spouse, who can vote on vital business decisions without having any expertise in the matter at hand.
At the OIS Group, we are here to sit down with you and go over possible scenarios to limit the emotional impact a sudden tragedy can have on a business and keep you moving forward.
Why not have The OIS Group act as your owner’s rep and
conduct a full review free of charge?
conduct a full review free of charge?
Contact us if you want to learn more about creating an executive
compensation plan that protects your company and enables you to continue to grow.