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Nonqualified Deferred Compensation Plans

Approaches That Provide Executive Rewards
and Company Retention

Finding new ways to retain and motivate executives
to deliver at the highest levels is becoming increasing
difficult. With competition often pirating management
talent and the executive mindset of “never enough” taking
hold, companies are faced with a significant challenge. 

We have solutions to those challenges.

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Traditional Nonqualified Deferred Compensation Plan (NQDCP or simply DCP)

A nonqualified deferred compensation (NQDCP or often referred to as “DCP”) allows highly compensated employees and management to elect to have a portion—up to 100%—of their compensation deferred and to be received along with investment earnings, at a future point in time as elected by the plan participant.

 

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Equity-Based Deferral Plans

Companies can allow their leadership teams to defer equity-based deferral plans such as restricted stock units (RSUs) and performance stock units (PSUs) into a nonqualified deferred compensation plan (DCP), allowing participants to defer income from stock price growth and, if prudent, eventually de-risk their retirement portfolios by diversifying out of the stock.

 

 

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Long-Term Incentive Plan (LTIP)

A long-term incentive plan is a company paid benefit designed to help the organization achieve specified performance goals and retain key talent. Contributions to the LTIP can be performance-based and/or based on a percentage of compensation and can vest over time. Benefits grow tax-deferred and may be distributed during employment or at retirement.

 

 

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Supplemental Executive Retirement Plan (SERP)

A supplemental executive retirement plan (SERP) is a company-paid benefit designed​ as either a defined benefit or a defined contribution plan to attract, retain and incentivize executives and/or other highly compensated employees. If both vesting and years of service requirements are met, a plan participant will receive a payout of income at retirement age.

 

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MSO Deferral PlanTM

The Mezrah Consulting MSO Deferral Plan is a valuable proprietary strategy that allows majority S Corporation and C Corporation owners to defer income and accumulate wealth on a tax-favored basis. The MSO plan strategy is a solution to the challenge associated with the inability for majority owners of privately held companies to defer income.   

 

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Deferred Compensation Plan Audit

If your company has a deferred compensation plan in place, a thorough DCP audit is essential for ensuring plan compliance and maximizing your plan’s effectiveness. We provide comprehensive audits, along with thoughtful guidance and consulting, to help you make the most of your existing deferred compensation plan strategy.

 

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Plan Funding Analysis

Mezrah Consulting prides itself on carefully and thoughtfully evaluating all of the informal funding options which include taxable investments and non-taxable investments. Determining the ideal funding vehicle for creating an asset to effectively offset the plan liability is paramount.

 

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