Greensboro, NC/January 8, 2007 – Executive benefits are widely used at America’s most prestigious companies. In fact, regardless of a company’s economic sector, it is highly likely to use numerous supplemental retirement plans and other executive benefits programs to retain and attract a quality executive team. These are two central conclusions from a comprehensive study from The Todd Organization, a leading nationwide executive benefits consulting firm.
The Todd Organization reviewed proxies and other financial disclosure documents to determine the prevalence of executive benefits at 276 publicly-held companies which are headquartered in the United States. All of these companies were selected as America’s Most Admired companies by Fortune Magazine in 2006.
Significant findings include:
· 92% of companies offer one or more nonqualified benefit plans;
· 86% of companies offer voluntary deferred compensation programs;
· 81% make at least one company contribution to a nonqualified benefit plan;
· 64% offer one or more supplemental executive retirement plans (SERP);
· The popularity of company match programs is reflected in the fact that 48% of companies offer a 401(k) match restoration program and 28% make a contribution of some other kind to a deferred compensation program; and
· Regardless of economic sector, executive benefits are very popular.
A chart illustrating the prevalence of 14 common executive benefits programs, by all 276 companies and by eight broad economic sectors, can be found at the end of the announcement.
Commenting on the findings, Ward Russell, President of The Todd Organization said, “Today more than ever companies want to be able to benchmark their executive benefits programs and know where they stand in relation to peers and competitors. This study makes clear that nonqualified retirement plans and other executive benefits are robust at prestigious companies.”
“It has been our experience that well managed companies see properly structured and well managed nonqualified retirement plans as an important tool that can help to cost effectively retain quality executives while boosting shareholder value,” said Russell.
“In 2007, with new requirements from the Securities and Exchange Commission mandating that companies disclose the value and change in value of their executive benefits plans, it will be even more important to know where a company’s benefits practices stand in relation to those who the company competes with for key talent,” said Russell.
The drive to maintain talented executives has become even more challenging in recent years because of several factors, notably the strong and growing economy and the expensing of stock options. Against this backdrop, executive benefits programs have become increasingly important at many companies.
There are a wide variety of restrictions on the amounts that can be contributed to, and received from, qualified retirement plans (i.e., pension, 401(k) and profit sharing plans). As a result, many companies institute nonqualified retirement plans to help executives receive the same percentage of pre-retirement plans from qualified and nonqualified plans as other employees would receive from qualified plans alone. Today, nonqualified retirement plans are a common benefit for many executives that currently earn more than $125,000 annually.
Founded in 1957, The Todd Organization is a nationwide leader in the design, financing, and administration of nonqualified retirement plans and other executive benefits. With more than 500 plans implemented, The Todd Organization serves executives and companies from all major industries. The Todd Organization’s mission is to help companies retain and attract executives who enhance shareholder value.
For additional information, see: www.toddorg.com.
The HR industry´s premier online community and resource for Human Resource professionals: HR, human resources, HR community, human resources community, HR best practices, best practices in human resources, online communities for HR, HR articles, HR news, human resources articles, human resources news, HR events, leadership, performance management, staffing and recruitment, benefits, compensation, staffing, recruitment, workforce acquisition, human capital management, HR management, human resources management, HR metrics and measurement, organizational development, executive coaching, HR law, employment law, labor relations, hiring employees, HR outsourcing, human resources outsourcing, training and development
hr.com.
human resources management resources for hr professionals. |
HR menus
|
HR events
|
HR Sitemap