Four Fringes that Attract Top
People
Fringe benefits hit executive hot buttons. Here are some of the most
popular benefits sought by top executives around the country. They're not just perks.
They're tools to help you recruit and retain the best people.
 | Salary Continuation.
Provides your key people additional income after their regular salary ends at retirement, disability or death. |
| Split Dollar program
funded with life insurance. A creative way for employers and employees to fund life insurance. The company pays all or part of the premiums for life insurance. The premiums are recovered from the death benefit or cash value in the future, and the balance goes to the named beneficiary. |
| Executive Bonus program
funded with life insurance. The business pays the premium on a key employee's life policy as a bonus to the employee. The bonus amount is deducted as a normal business expense and reported on the employee's W-2. The employee owns the policy and reports the premium as taxable income. The employee's cost is only the tax on the bonus, which may also be bonused so the employee's out of pocket cost is zero. The employee owns the policy and holds all rights to cash values, policy loans and withdrawals. |
| Deferred Compensation
program funded with life insurance. Deferred compensation delays payment of a portion of a highly paid person's income until retirement. It can also provide funds in case of early death or disability. |
