Nonqualified Deferred Compensation Programs: Is One Right for Your Organization?

Many employers use nonqualified deferred compensation programs to help attract, retain, and reward executives or other highly compensated employees. Throughout this brief we are going to use the term “key employee” to mean an executive or highly compensated employee who is eligible to participate in a nonqualified deferred compensation plan. A nonqualified plan can be used to provide additional long-term savings or retirement benefits to key employees, to provide incentives to achieve business objectives, or both.

Note: This Findley brief provides a basic overview of nonqualified deferred compensation plans in common use by private sector, for profit employers providing programs that are not stock based. Although beyond the scope of this brief, there are a variety of nonqualified, incentive compensation, and stock equity programs in use.

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Nonqualified Deferred Compensation Programs: Is One Right for Your Organization

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Category: Retirement Plans
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