Attain. Retain. Succeed.
Executive Bonus Arrangements
Inspire and empower your business clients to retain their top talent
Owner dependency is the biggest risk that exists in small businesses today.
Building strong management teams is one of the best ways to ensure the business not just survives, but also thrives with and without the owner around. These key individuals not only assist in making the business run successfully day in and day out, but also make the business more valuable and transferrable.
Many business owners don’t think about the impact on the business of losing one of their key employees or senior managers. Having the foresight to protect the business against the loss of an essential employee is perhaps the company's most valuable asset and can mean the difference between business as usual or closing up shop.
Your business clients may be looking for selective benefits that can help them attract, retain, and reward the top talent to help ensure the health and longevity of their businesses. If so, an executive bonus arrangement may be the right fit.
What is an executive bonus arrangement?
- Life insurance policy on the life of the executive
- Used to provide additional, targeted benefits to employee
- Policy is owned by the employee
Who is an executive bonus arrangement for?
Executive bonus plans are often popular with top-level employees.
- Top employees appreciate knowing that their families are protected if anything unexpected happens.
- They have more peace of mind and financial security.
- They appreciate the long-term financial incentives and the access to a financial vehicle that isn’t subject to qualified plan limits.
How does an executive bonus agreement work?
EXECUTIVE BONUS ARRANGEMENTS
EXECUTIVE BONUS ARRANGEMENTS
Why is it important to retain key employees?
- Highly specialized employees may leave a large gap if they leave
- May be impossible to replace the employee quickly
- Time invested to interview and hire new candidates
- Cost of attracting new employees likely to be high
What are the benefits?
- Inspire and empower your business clients to retain their top talent.
- Encourages employees to stay, decreasing turnover
- Designed to meet needs of a specific employee
- Target specific individuals
- Straightforward and simple to implement
- No IRS approval needed
- Flexible design
- The design can be customized for each executive allowing for flexibility for the employer.
Additional Information of interest
This digital directory provides access to the materials and resources that can help you integrate the executive bonus concept and business planning strategies into your practice.
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