Deferred Compensation News and Updates

Deferred Compensation News brings you the latest information and insights on 409A nonqualified deferred compensation; institutional COLI, BOLI, and ICOLI; tax-and cost-efficient non-COLI funding strategies; low-cost tax managed non-COLI asset/liability designs; executive benefits benchmarking; succession planning and timely issues of executive pay and benefits. 
Featured image for “This Deferred Compensation Agreement Is a Multi-Million Dollar Home Run”
July 14, 2020

This Deferred Compensation Agreement Is a Multi-Million Dollar Home Run

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How does your retirement plan stack up to Bobby Bonilla’s deferred compensation agreement? If July 1, 2020 came and passed and you didn’t realize it was “Bobby Bonilla Day”, don’t worry. He probably did enough celebrating to make up for anyone else who missed the date.
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July 09, 2020

Deferred Compensation News Now Available by Email Subscription

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Fulcrum Partners, one of the largest independent executive benefits consultancies in the U.S., announces the availability of Deferred Compensation News on a no-cost, subscription basis. Previously offered only as an online publication, Deferred Compensation News is now available for direct email delivery.
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March 19, 2020

Impact of the COVID-19 Pandemic on Your Medical and Retirement Plans

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IslerDare is a legal firm dedicated exclusively to the representation of management in all aspects of labor, employment and employee benefits law. We frequently share their insights here on the Deferred Compensation Blog, and are pleased to provide you this link to their timely newsletter, “The Impact of the COVID-19 Pandemic on Your Medical and Retirement Plans,” and the excerpt featured below, which specifically addresses current IRS positions on issues that could result from the COVID-19 Pandemic. 
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November 05, 2019

DOL Proposes New Retirement Plan Electronic Disclosure Rule

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The team at Fulcrum Partners shares this important update from IslerDare PC, on the proposed new retirement plan electronic disclosure rule, from the Department of Labor (the DOL), regarding the allowance of online retirement plan disclosures.
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October 18, 2019

Why Today’s Organizations Offer Deferred Compensation Plans

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Based on 2018 research results1, published and released by Principal® earlier this year, employers recognize that competitive benefit offerings remain key in attracting top talent. In a job market that can be tight and highly competitive, employers are looking for ways to recruit and retain key employees. Principal’s research shows that retaining and motivating key employees, along with restoring a company’s qualified plan contributions, are leading reasons employers choose to make contributions to an employee’s plan. In fact, since 2015, of the employers surveyed, the number that see deferred compensation as a means to provide a competitive benefits package has increased by fourteen percentage points. Plus, fifty-four percent of the surveyed employers are choosing to make contributions to the retirement plans of key employees. Top Reasons Why Organizations Offer Deferred Compensation Plans: 97 percent of employers surveyed desire to provide a competitive benefits package when recruiting top talent. 94 percent of organizations surveyed want to help participants save for retirement beyond qualified plan limits. 91 percent of organizations surveyed offer deferred comp plans as a way to help retain key employees. 80 percent of employers surveyed see offering a deferred comp plan as a way to help their key employees
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October 09, 2019

Executive Pay Tied to Corporate Sustainability for Another Major Company

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Last week, The Clorox Company announced a new initiative that ties executive pay to the realization of environmental, social and governance (ESG) goals. In tying executive pay to sustainability goals The Clorox Company joins oil companies Royal Dutch Shell PLC and BP PLC, corporations that have already implemented similarly inspired executive pay or bonus structures. Laura Stein, Clorox executive vice president – general counsel and Corporate Affairs, explained, “Now more than ever, a broad spectrum of stakeholders, from investors to consumers, from customers to employees, are increasingly expecting companies to lead in driving positive environmental, social and ethical change, while ensuring they create and deliver value. Our ambitious, integrated IGNITE ESG goals aim to deliver on that aspiration through our focus on innovating for Good Growth.” In a statement to Dow Jones Newswires, Benno Dorer, chairman and CEO at Clorox, said, “As a mission-driven company, it’s important for us to continue integrating ESG into our overall business strategy.” According to CFO Magazine, the plan impacts the executive pay of the company’s 14-member Clorox Executive Committee, including CFO Kevin Jacobsen who earned nearly $2.3 million in fiscal 2019 with an incentive plan bonus of $331,650 and CEO Benno Dorer, who earned over
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October 01, 2019

Compensation Clawback Attempts and Unanticipated Outcomes

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The following article, originally published on the Executive Compensation Blog by Attorney Michael S. Melbinger, is republished here with permission.    Compensation Clawback Attempts Lead to Unintended Consequences   Just back from another excellent CompensationStandards.com/NASPP* Annual Conference. Among the many new and interesting topics explored was an issue related to compensation clawbacks, which recently has been thrust into prominence.  The issue whether a company’s indemnification provisions would require it to reimburse a covered executive for (i) compensation amounts clawed back and/or (ii) the costs of defending against the company’s lawsuit against the executive attempting to clawback the compensation. In one ongoing case, after the company filed a lawsuit seeking a clawback, the former corporate officers responded by seeking advancement of legal fees and indemnification. The company’s bylaws provide that legal fees are advanced to former corporate officers when a claim related to actions taken in their official corporate capacity is brought. The company’s compensation clawback provision was silent on the matter of advancement of fees. Despite the company’s best efforts to raise policy objections in response to the advancement issue raised by the defendants, the court awarded legal fee advancement to the former executives. A court has yet to issue
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September 20, 2019

Fulcrum Partners Deferred Compensation News Update

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Read more about some of the most-popular recent posts here on Deferred Compensation News and Updates: Sixth Circuit Nonqualified Deferred Compensation Plan Decision Highlights Importance of Code Section 409A Compliance and ERISA (the Employee Retirement Income Security Act of 1974) Claims Procedures Attorneys Greg Daugherty and Dave Tumen of Porter Wright, shared insights on why being subject to ERISA may be a good thing for nonqualified deferred compensation plans, particularly with respect to resolving disputes and claims for benefits. As they explained, “Even if it is questionable whether an NQDC plan is subject to ERISA (i.e., because it arguably does not provide retirement benefits or covers only one person), sometimes it might make sense to include ERISA claims procedures and file a top hat letter.” #ReadMore: For an NQDC Plan, Being Subject to ERISA May Be A Good Thing Fulcrum Partners Managing Director Phil Currie Presented at PLANADVISER Conference Managing Director Phil Currie of Fulcrum Partners and Jeff Roberts CPC, Regional Channel Manager ADP Retirement Services were featured presenters at the PLANADVISER National Conference hosted this week in Orlando, Florida. Read the bio for each panelist in the slides below. [slideshare id=173939170&doc=planadvisersept2019003-190920003654] Fulcrum Partners Lends Its Support to the 5 Star Veterans Center and Daniel Kids Two 501(c)(3)
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September 06, 2019

Fulcrum Partners Friday Deferred Compensation News Wrap Up

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In case you missed it (#ICYMI), here are a few of the most-read recent posts on Deferred Compensation News and Updates: Filing VCPs Electronically As of April 1, 2019, all Voluntary Correction Program (VCP) submissions are to be made electronically via www.pay.gov. In January 2019, Form 8950 was updated to reflect the new electronic filing procedures. #ReadMore: IRS Updates Determination Letter Program and Revises Correction Procedures Under EPCRS Fulcrum Partners Managing Director Phil Currie Will be Presenting at PLANADVISER Conference Phil Currie will be part of a two-member panel looking at “The Value of Supplementary Plan Options”. Phil is the Managing Director at Fulcrum Partners Newport Beach, California and Fulcrum Partners Salt Lake City, Utah. #ReadMore: Phil Currie Will Present at PLANADVISER National Conference in September Every Company in the S&P 500 Now Has a Woman on Its Board of Directors Managing Director Kristine Kopsiaftis Lampert, Fulcrum Partners Delray Beach, observes, “Women are an integral part of the corporate world. …Bringing diversity of thought and experience to the boardroom allows for better decision-making …” #ReadMore: Institutional Investors and Stakeholders Helping Drive Gender Parity on Corporate Boards #FulcrumPartners #DeferredCompensationNews
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July 24, 2019

6 FAQs for Plan Sponsors #ICYMI from Fulcrum Partners

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6 FAQs for Plan Sponsors previously published 6.17.2019 Download as a PDF Question: Why do employers, as plan sponsors, offer deferred compensation plans? of employers offer deferred compensation plans in order to create a competitive benefits package of employers want to help plan participants save for retirement beyond the limits of qualified plans of employers believe a deferred comp plan helps them retain key employees of employers want to help key employees better manage current taxation 67 percent of plan sponsors report that they are concerned about losing key employees to competitors. Q. What changes to plans are plan  sponsors most likely to make?   Q. How frequently do most employers review a plan to identify needed changes?   Q. What percentage of employers contribute to their company’s plan and why?   Q. What role do employers expect financial consultants to play?   Q. What factors build satisfaction with the plan recordkeeper?   Statistics that appear in this document are drawn from The 2018 Principal Trends in Nonqualified Deferred Compensation report, an online survey of 271 NQDC plan sponsors conducted between June 25 and July 23, 2018. This report is based on information provided by: Principal Life Insurance Company and is
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