Executive Compensation Plans
Executive Compensation Plans
Securing talented leaders requires more than standard pay packages, and businesses looking to keep top executives committed over the long term benefit from strategies that reward dedication and strengthen organizational stability. Matador Insurance builds executive compensation plans that meet both company objectives and executive expectations, creating lasting value for all.
What Is An Executive Compensation Plan?
An executive compensation plan is a specialized benefit arrangement created to reward and retain high-performing leaders.
These plans work alongside existing salary and bonus structures, offering additional incentives tied to long-term service. Often funded through life insurance or deferred compensation tools, they provide opportunities for tax-advantaged growth while giving the company control over terms and funding.
They help build loyalty without changing ownership or requiring complex restructuring, giving owners an effective way to invest in leadership without giving away equity.
Why Business Owners Acquire Executive Compensation Plans
Owners turn to executive compensation plans to lower turnover and protect leadership continuity, as offering valuable benefits strengthens loyalty and lessens the risk of losing essential talent to competitors. These plans also support succession goals by encouraging executives to stay engaged during transitions, stabilizing the organization during periods of change.
Flexibility is another significant appeal. Plans can be customized to align with company objectives while addressing the personal financial goals of executives, giving both sides an arrangement that works without sacrificing control.
Benefits For Executives & Employees
Employers gain long-term stability, keeping leadership in place and focused on growth. They maintain control over plan elements, including contributions and vesting terms, allowing adjustments as business needs shift.
Executives benefit from supplemental retirement income and tax-deferred growth on assets associated with the plan. Added layers of financial protection make the arrangement even more attractive, strengthening loyalty and commitment to the company’s future.
Types Of Plans Matador Helps Build
Matador customizes each plan to match the specific needs of a business and its leadership, with common structures including:
Supplemental Executive Retirement Plans (SERPs)
Promise additional retirement benefits funded by company contributions.
Split-Dollar Arrangements
Companies may use cost-sharing policies where both the employer and executive benefit from coverage.
Deferred Compensation Strategies
Allow executives to postpone a portion of income for future payout, offering tax advantages and long-term savings.
Matador’s Planning Process
Matador uses a clear process built around understanding and customization. During the initial Discovery meeting, we assess your goals and leadership needs to shape the right plan.
From there, a Strategy presentation follows, offering custom recommendations. Finally, our Annual Reviews make sure that the plan stays aligned with shifts in leadership and business objectives. Throughout, clients receive white-glove service with open communication and professional care.
Who These Plans Are Best Suited For
Small to midsize businesses without stock options, family-owned companies seeking leadership stability, and professional firms aiming to retain high-value executives all benefit from these solutions.
Businesses that want competitive compensation without giving up ownership find them particularly valuable.
Build a Plan That Attracts & Retains Leadership
Strong leadership requires thoughtful rewards. Schedule a consultation with Matador Insurance to create an executive compensation plan that attracts and retains the talent driving your success.