Compensation Planning

Optimizing Compensation Plans for Retention

Most compensation plans we’ve seen do not address the real challenges of recruitment and retention. Annual profit sharing bonuses have marginal, if any, retention benefits and poor tax consequences for the key employees. Conventional retirement benefit plans add to yourbalance sheet and cause compounding cash flow burdens for private companies. However, high-earning key employees are essential for growth and owners’ ability to increase business value. Addressing these challenges improves results of transitions and sales.

Our team helps private companies evaluate their current retirement plan and administrative costs ─ 401k and Roth 401k, SEP, Simple plans ─ and explore options to design and administer a plan if they do not offer one. Federal tax credits may underwrite 100 percent of the costs to start the plan.