Five considerations when offering nonqualified compensation plans
WHITE PAPER |
The most effective compensation plans attract and motivate personnel while simultaneously helping the company meet its goals. Yet limitations imposed on qualified plans can reduce their value as a means to retain highly compensated executives. What is available beyond a basic 401(k) to retain top talent?
One incentive option is a nonqualified plan, which is a deferred compensation plan not set up to meet the rules governing qualified plans. The attached white paper discusses five considerations for these nonqualified plans:
- How is a nonqualified plan different from a qualified plan?
- What are the key considerations of a nonqualified plan?
- What is the security of a nonqualified deferred compensation plan and what does it promise?
- How can a nonqualified deferred compensation plan be funded?
- How can a nonqualified deferred compensation plan be designed?