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Executive Compensation

The Challenge

Business owners and key employees are finding it more difficult to adequately save for retirement. Why? Qualified retirement plans and group insurance plans, even Social Security, place limits on contributions, layouts and tax advantages of benefits for highly-paid individuals. Industry retirement experts suggest we need at least 80% of pre-retirement income to maintain our current standard of living in retirement.

The Income Gap

With qualified plans and Social Security alone, you and your key employees could receive as little as 30% of your current income at retirement. This creates a retirement income gap.  The American Taxpayer Relief Act of 2012 brought new challenges to high-income individuals including higher marginal tax rates and increases in capital gains. 

The Solution

Nonqualified deferred compensation (NQDC) plans are more popular than ever for employers looking to provide key employees a potential planning tool for coping with the new tax environment. And with the improving economy, having the right benefits is essential to attract and retain the best talent for success.