Employers seeking to compensate their executive employees and incent them to stay with the company long term often turn their eye towards “deferred compensation,” compensation that an executive earns year-by-year but is paid some time in the future. Employers may not think of the web of legal and financial considerations that must go into designing an executive compensation plan. This presentation will cover the basics of designing, funding, and administering an executive deferred compensation plan. This presentation will also cover the impact of tax reform and recent IRS guidance on executive compensation. Among other topics, this presentation will cover:
1. Design options for executive compensation retirement plans
2. Avoiding application of ERISA
3. Understanding funding options (and financial implications) (trust v. insurance v. no funding)
4. Avoiding the traps of Code Section 409A and the potential harm to employees
5. Understanding when executive compensation is or is not deductible (covering recent Tax law changes and 2018 IRS guidance on deductions for public companies).