Financial Planners and Agents

Executive Compensation

Executive Compensation Plans

    At Agency of America, Inc ("AOA") we realize that you, as the business owner, partner, or key executive are keenly concerned with recruiting and retaining top talent.  Chief among your tools in that effort are your Executive Compensation Plans.  AOA does not engage in propounding plans for basic compensation.  Rather, we help you where it can help most -- with additional compensation, or BONUS PLANS.  After all, in basic compensation -- the agreed-upon salary, stock options, etc. -- the competitive forces of the market place usually dictate your decisions.  In bonus plans, you can set your company above the competition and win the recruiting and retention contest.  Here are two of the many types of Executive Compensation, or "Bonus" plans in the AOA toolbox:

Executive Bonus Section 162 Plans:  Plans established under Section 162 of the Internal Revenue Code allow an employer to provide significant additional compensation to executives through life insurance, with tax-deductible premiums paid by the employer.  The employee controls the cash value, and names the beneficiaries.  THe employee actually controls the policy as owner.  The benefit to your business is that it can take a tax deduction for the premium, thus providing a significant benefit to the employee very inexpensively.  AOA can provide a smooth set-up for Section 162 Plans for your firm.  Click here to contact us for the first step - a free, confidential consultation about your Executive Compensation plans.

 Split-Dollar Plans are another popular method of using life insurance to bonus key executives.  Collateral Split Dollar and Endorsement Split-Dollar are two of the most common types of split-dollar plans.  The two plans differ in key points, such as ownership of the policy.  In an endorsement plan, the employer owns the policy and and endorses of a portion of the death benefit to the employee or his or her designated beneficiary. The  employee's beneficiary receives a portion of  death benefits, and the employer receives the remainder. Under Collateral plans, the employee owns the policy, and the premiums are treated as loans to the employee, which are paid back at death from the death proceeds.  Split dollar plans are very effective at recruiting and retaining key employees, and also in provicding additional retirement funding for business owners.  When coupled with AOA-provided capital facilities, these plan can be highly efficient movers of funds from your business pocket to your personal pocket in tax-efficient ways.  Contact us for a review of your needs in executive compensation.

The above are but two examples of the many types of Executive Compensation (or "Bonus")  plans that can be structured with creative uses of annuities, life insurance, and leverage to maximize your wealth transfer as owner, and to attract and retain key people.  Click here to arrange a private consultation with the experts from AOA.

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