Page 246 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)

232 The Complete Guide to Executive Compensation

Salary
Monthly
Percentage of Pay
Annual Monthly LTD Benefit
$50,000 $4,166.67 $2,791.67 66.7%

75,000 6,250.00 3,500.00 56.0

100,000 8,333.33 3,500.00 42.0
250,000 20,833.33 3,500.00 16.8
1,000,000 83,333.33 3,500.00 4.2

Table 6-4. LTD benefit vs. salary

either be paid or carried over to the following year. This benefit is probably of moderate
interest to executives.
Family and Medical Leave

The 1993 Family and Medical Leave Act (FAMLA) legally mandated what some employers
had been providing voluntarily—time off to tend to family issues and/or recover from a
medical problem. FAMLA requires job-protected, unpaid time off for up to 12 weeks in a
12-month period for certain family and medical reasons. Preexisting medical coverage also
must be continued. Some companies will consider at least a portion of the lost time as paid
time off. The job protection aspect may be of moderate importance to an executive worried
about being replaced.
Elder Care

In addition to the benefits described under the “Family and Medical Leave” section, compa-
nies may choose to extend the period of paid and unpaid time off for care of parents. See
“Parental Leave,” below. This benefit is of modest interest to executives.

Funeral Leave
Funeral leave (or bereavement pay) is typically limited to about three days’ salary at time
of death of a person in the immediate or extended family. The latter is a more generous
definition of coverage than the former. Since an executive will most likely be expected to
make up for lost time, funeral leave is of low importance.
General Leave and Sabbaticals

In addition to the aforementioned leaves, some companies allow a general leave of absence for
other reasons, such as volunteer work. This leave of up to one year, depending on length of
service, is typically unpaid, although some companies pay a portion of the period. For example,
an upaid leave of absence for a stated period of time may be available for an employee to seek
and accept public office, to accept a position at an educational or nonprofit institution, or to
assume some other position with a defined civic objective. These leaves are subject to absence
of conflicts of interest, and each request would require approval by company attorneys.