How to Structure a Deferred Compensation Plan for Private Company Execs

How to Structure a Deferred Compensation Plan for Private Company Execs Deferred compensation plans have become essential tools for attracting and retaining top-level executives in private companies. They provide significant long-term benefits while also enabling tax optimization and retention incentives. This guide walks through the core elements, compliance issues, and structuring strategies for a successful deferred comp plan. 📌 Table of Contents What Is Deferred Compensation? Types of Deferred Compensation Plans Key Elements of a Well-Structured Plan Tax & Legal Compliance Best Practices for Implementation 📘 What Is Deferred Compensation? Deferred compensation refers to a portion of an executive’s income that is paid out at a later date, often after retirement or departure from the company. Unlike traditional salaries or bonuses, these funds are not immediately taxed, providing potential tax advantages. 💼 Types of Deferred Compensat...