Supplemental Benefit Packages

Of the five major components of the Total Rewards Package for Executives, the one that has undergone the most significant restructuring in the last few years is Supplemental Executive Benefit Programs.  Historically, we used to define these as items of high intrinsic value to the executives, with relative little cost, such reserved parking spaces and personalized stationary.

Times have changed and supplemental benefits currently include a slew of programs which often have a very expensive price tag attached.  These include first dollar medical coverage, supplemental retirement plans that provide benefits often well in excess of ERISA limits, auto allowances, the use of expensive decorators for the CEO’s offices, and a host of other items.  The common denominators of these extra benefits tend to have three (3) attributes: (1) they generally cost a lot; (2) they tend to be an irritant to shareholders, especially when stock prices are depressed and the companies aren’t doing well; and (3) the government has actively tried to close loopholes to ensure that the IRS gets its fair amount of taxes on hidden compensation.

Reality is that all supplemental benefits are not nefarious, and there are some appropriate business reasons for such programs.  The key is to design them so that they are in compliance with the continually changing regulatory landscape, and that the benefits achieve a necessary and positive business purpose without alienating any of the organization’s various audiences.

Compensation Resources, Inc. has the experience, knowledge and skills to develop supplemental benefits so that they accomplish what is needed to further the business, while ensuring that they will stand up to the multitude of often confusing and conflicting rules.  In order to see how we can assist your company, please call Paul Dorf or Harry Schum at (877) 934-0505.