Your solution for recruiting, retaining, retiring and rewarding your best people.
Businesses are always looking for ways to attract and retain top executives. A non-qualified deferred compensation plan can give you the leverage to retain and reward your valuable key employees, and show them how much you appreciate their contribution to the business.
How It Works
A non-qualified deferred compensation plan reduces a portion of an employee's taxable income in the current year and is paid out at a date after which the income is actually earned. M&T Securities can help provide solutions to fund deferred compensation plans using life insurance.
Types of Deferred Compensation
There are a variety of ways to offer deferred compensation, including:
- Retirement plans
- Stock options
Advantages for Your Company
- A mechanism to recruit and retain valued executives with an added retirement plan
- A way to recognize the contributions of key employees with an additional benefit
- Flexibility regarding whether the business or executive pays the premium of a life insurance contract inside a deferred compensation plan
Advantages for Your Executives
- Deferred taxes on earnings until the executive receives the compensation according to the terms of the plan
- Additional compensation in the form of retirement income
- If funded with life insurance, the plan may provide tax-free death benefit proceeds to the executive's beneficiary