Key Executive Compensation
Financial incentives are often required to attract and retain the highest quality of management. Long-term benefit programs can be offered that tie the future economic incentives of a key employee to the performance of the company. Corporate Capital Resources often consults with Compensation Committees of the Boards of Directors to structure incentive programs to meet the current and future needs of quality managers within overall corporate goals relating to these concepts:
- Reward to retain key employees
- Reward to support an ESOP strategy
- Corporate obligation for a future benefit subject to vesting
- Balancing the costs and benefits
- Shift employee tax burden to the future
- Benefits can be discriminatory
- Can be designed as equity equivalents
- Not formally funded
- Substantial risk of forfeiture
- Uses of corporate owned life insurance (COLI)
- Death benefit to employees’ family
- Recovery of capital to employer
- Corporate borrowing capabilities
- Fund ESOP re-purchase
- Fund deferred compensation