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Capital Accumulation Plans
Employees are granted rewards that appreciate over a long period (i.e., 10, 15 years or career), based on annual or long-term company performance. Annual or longer-term performance targets are established, as well as appropriate funding mechanisms. Proper documentation is required which memorializes the design, development, implementation and administration of the plan.
Capital Accumulation Plans focus participants on the attainment of specific targets, and, many times, may be used in conjunction with other types of Long-Term Incentives.
NOTE: this type of Alternative Reward Plan may take many forms, but is generally considered to be a non-qualified deferred compensation program.
To find out more on how Compensation Resources, Inc. can help your company with Long-Term Capital Accumulation, please contact us or call us directly to speak with our compensation consultants at 877-934-0505.
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