Executive Bonus Arrangement

Executive Bonus Arrangement

In today’s volatile economy, it’s more important than

ever to attract and retain key employees to help your

business succeed.

Yet, as a business owner, you face unique challenges

when looking for a bonus compensation package. While

a comprehensive plan might work for a large

organization, you may be looking for a solution that is

easy to implement and maintain.

One simple way to reward your key employees for

their current contributions and also provide future

incentives is by offering them an executive bonus

arrangement. An executive bonus arrangement is a

the simple, nonqualified plan that allows you to offer

your key employees bonus compensation that has

both immediate and long-term benefits for them,

their families, and your business.

As the employer, you retain complete control of the

arrangement. You have the ability to choose the

employees who will receive this benefit, select the

bonus amount for each employee, determine the

length of the agreement, and decide when your

employees can access the benefits. Your company

will also receive tax advantages while avoiding most

of the paperwork, reporting requirements, and limitations of a more complex plan.