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Fulcrum Partners has published a new report designed for organizations and their CPAs and financial advisors. The report, titled “Recognize and Motivate Key Employees” explains what a nonqualified incentive bonus plan is and how a plan can help organizations retain and reward employees essential to the company’s success. The report also looks at how experienced guidance helps organizations and their key employees through this process.
Nonqualified Incentive Bonus Plan Design
The following is an excerpt from the report:
“Employers are in control of making the plan their own, because the plan is always based on the specific goals of the organization and unique needs of its key employees. Together, the employer and the financial professional walk through the decisions that need to be made to design a plan that makes sense for the organization:
Who participates: Select the groups of key employees (“Top Hat” and “non-Top Hat” employees) to participate in this plan.
What can be contributed: Employers can provide one contribution per participant each year with the flexibility to vary benefits by individual employees.
What happens with the contributions: Employers can select a reference investment line-up to make available to participants from a broad range of options. In addition, organizations can decide how and when key employees may receive the benefits based on organizational needs. However, benefits must be paid to them within 10 years of the date of the original employer grant.
How are benefits paid: Employers decide how payouts can be received or deferred from the plan. Benefits are always distributed as a lump sum.”
You can download a copy of the report here Recognize and Motivate Key Employees with a Nonqualified Incentive Bonus Plan or view it on the Fulcrum Partners “Alliance” webpage.
Securities offered through Lion Street Financial, LLC (LSF) and Valmark Securities, Inc. (VSI), each a member of FINRA and SIPC. Investment advisory services offered through CapAcuity, LLC; Lion Street Advisors, LLC (LSF) and Valmark Advisers, Inc. (VAI), each an SEC registered investment advisor. Please refer to your investment advisory agreement and the Form ADV disclosures provided to you for more information. VAI/VSI, LSF and BDO Alliance USA are non-affiliated entities and separate entities from Fulcrum Partners and CapAcuity, LLC. Unless otherwise noted, VAI/VSI, LSF and BDO Alliance USA are not affiliated, associated, authorized, endorsed by, or in any way officially connected with any other company, agency or government agency identified or referenced in this document.
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