In today's high-tech economic climate, key executive personnel are becoming increasingly difficult to retain. Clients often seek new and innovative incentives and rewards to retain and challenge an employee who is vital to the financial health of a business.

Compensation packages must become ever more creative in providing incentives which promote retention of those key employees.

As most key executives are also highly compensated (per IRC Sec 414) and invariably contribute the current allowable maximum into their qualified retirement plan, deferred compensation modeling becomes the more prevalent and viable option. A Nonqualified Deferred Compensation Plan can be individually designed for each employee utilizing corporate owned life insurance (COLI) as the funding vehicle.

Deferred Compensation Plans can be mutually beneficial to both employer and executive. Yet the interrelationship between the agreements and the underlying funding vehicle (COLI) can become quite complex. Professional consultation is therefore highly recommended in establishing a Deferred Compensation Plan.

Contact Us for more information on how The Washington Insurance Group can serve your Executive Compensation needs.