Executive Benefits Planning And Non-Qualified Deferred Compensation
Compete For Leaders
Attracting And Retaining Top Talent
When a 401k cap limits savings, executive benefits planning fills the gap. Companies in Detroit, Ann Arbor, and Los Angeles use tailored programs to reward key leaders, align incentives, and reduce turnover. A clear promise of future benefits helps retain specialists in Pasadena, Irvine, and Oakland County, while keeping compensation competitive without spiking payroll today.
The right mix can attract leaders, keep them focused, and support long-term value creation. MWI Agency will benchmark options, map funding, and deliver a package that stands up to scrutiny from boards, partners, and candidates.
Choose The Right Vehicle
Types Of Executive Plans
Non-qualified deferred compensation allows executives to defer salary or bonuses for future payout, often with a company match and a vesting schedule. A SERP plan functions as a custom pension funded by the employer. Executive bonus arrangements use company-paid premiums to build a cash value policy that the executive owns. MWI Agency sources the insurance and annuity vehicles, sets vesting mechanics, and coordinates documents so the benefit design is understandable and durable.
Funding And Security
Promises must be believable. Many employers informally fund obligations with cash value life insurance or annuities and may use a rabbi trust to improve perception of benefit security. We model cash flows so assets match liabilities and align carriers with long histories of policy performance. For multi-state teams across Michigan and California, MWI Agency builds funding schedules that stay on track through growth and leadership changes.
Tax Implications And Administration
Non-qualified plans avoid contribution limits but require careful timing on elections and payouts. Employers typically deduct at distribution, while executives recognize taxable income when benefits are paid. We coordinate with counsel and your CPA to draft plan documents, set deferral windows, and outline administration so payroll and finance teams can manage the program confidently.
Frequently Asked Questions
Clarity Before You Launch
Is a deferred comp plan useful for a smaller company?
It can be, especially when you rely on one or two leaders you want to keep long term.
How is a SERP different from a 401k?
A SERP is employer-funded, customizable, and not capped like qualified plans, but it relies on company solvency.
What happens if the executive leaves or the company is sold?
Vesting schedules and plan documents control outcomes. We design with change-in-control and early departure scenarios in mind.
Can life insurance be part of the package?
es. Executive bonus plans and company-owned funding strategies use policies to support future benefits while creating value today.
