Page 358 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)

344 The Complete Guide to Executive Compensation

1. Identify and prioritize executive wants.
2. Determine the extent to which all-employee benefit plans do not meet highly paid executive needs.
3. Determine what changes can be made in all-employee plans (and their cost) to meet executive
needs.
4. Determine if benefits for executives only is consistent with desired company culture.
5. Determine tax treatment for company and individual.
6. Identify who will be eligible for the enhanced benefits and the requirements for each.
7. Determine impact on financial statements and proxy SEC disclosure.
8. Test for legal compliance, adjusting as appropriate.
9. Communicate and implement the plan.
10. Analyze the results and make appropriate changes in plans.
Table 6-39. Executive benefit plan action steps

Unfortunately, too many individuals concerned with executive compensation pay too
little attention to employee benefits and perquisites as an important part of the total package.
However, the same cannot be said about incentive pay, the subject of the next two chapters:
short-term incentives and long-term incentives.
Note: You should not rely on accounting, tax, SEC, or other professional service statements
in this chapter. You need to seek appropriate professional counsel for such guidance.
Statements made in this chapter and elsewhere are offered as being illustrative to help you
frame such further investigations with the help of counsel.