NQDC Plans: Saving More For Retirement

NQDC Plans:  Saving More For Retirement

Many business owners and key employees would like to save more money for retirement than they’re allowed to sock away in their 401(k) plan. For 2016, the annual elective deferral contribution limit for a 401(k) is just $18,000, or $24,000 if you’re 50 years of age or older. This represents a significantly lower percentage of the typical owner’s or employee's salary than the percentage of...

Choosing A Compensation Tool To Attract And Retain Key Employees: Restricted Stock And RSUs

Choosing A Compensation Tool To Attract And Retain Key Employees: Restricted Stock And RSUs

With restricted stock, the company awards key employees nontransferable shares up front, and those shares are forfeitable until they have vested. The company typically bases vesting on continued employment, achievement of performance goals, or both. With RSUs, however, the company awards the stock, or sometimes its cash value, after the executive meets vesting conditions. Stock options remain...

Phantom Stock Plans Turn Key Employees Into Leaders

Like most business owners, you’re probably always looking for a way to break through to that higher level of profitability. Although you should never stop trying, the answer may lie in a person, not an idea. One way to draw profit leaders to your business — or keep ones who are already on staff — may be offering select employees additional incentive in the form of a phantom stock plan....