Are you thinking of protecting key employees, not only for their benefit, but for the longevity of your business?
As a business owner, chief financial officer or board member, you have a responsibility to your company to make sure that business risk is minimized. Key employee insurance is a cost effective way to eliminate the unnecessary business risk associated with the disability or death of a critical contributor to your organization.
Protecting Key Employees Is A Necessity
But what if a key employee decides to leave your company to start their own business or even worse takes a position with a major competitor? Key employee retention is essential to the continued success of any company. Structured properly, key man insurance can provide a valuable executive benefit to the employee while at the same time tying them to your company.
The top 20 percent of a company’s employees should be rewarded in the soul and wallet because they are the ones who make magic happen. Losing one of these top performers is a leadership sin.
– Jack Welch, former CEO, General Electric
As a business grows and profits increase, it is important to compensate and reward key employees who are responsible for the company’s success.
A well designed executive benefit plan is essential if a business is going to retain its talented employees and executives. Bonus arrangements and non-qualified deferred compensation plans are attractive alternatives to provide additional life insurance incentives as well as supplemental retirement income opportunities to these key people.
Executive compensation arrangements may allow the business to selectively choose which employees will participate in the benefits plan. Additionally, they don’t have the regulatory burden associated with other qualified benefit plans. Some of the more attractive available plan options include the executive bonus plans, supplemental executive retirement plans (SERP) and other deferred compensation arrangements.