Restricted Stock Units and Performance Stock Units are the most commonly used form of long-term equity compensation.
They offer a number of benefits to executives and to the plan sponsor, but one issue for executives is the control over the timing of taxation.
As outlined in the video, a properly structured nonqualified deferred compensation plan could provide executives an opportunity to regain control over the timing of the taxation of RSUs and PSUs as well as a number of other benefits.
In summary, it may be possible to significantly enhance the value of the total rewards package for executives, other key employees and Directors by allowing the deferral and diversification of RSUs and PSUs in a properly structured nonqualified deferred compensation plan.
To ensure that your company’s total rewards package for executives and other key employees is competitive, we suggest you consider a nonqualified deferred compensation plan that permits the deferral and diversification of RSUs and PSUs.
An EBS consultant, supported by the firm’s financial analysis group, can work with you to determine the potential benefits to executives and other key employees and the financial impact to the company.
Chris Wyrtzen has been absolutely irreplaceable in dealing with my Executive Compensation (SERP) account decisions over the last several years.
We would recommend EBS to those firms looking for creative, dedicated consultants whose plan designs meet the need to attract, retain and reward key employees.
We would recommend EBS to other companies looking for executive benefit programs that can help companies attract, retain and reward key employees.
EBS helped us to adequately fund the LTC by improving our financial modeling of plan growth and distributions and finding more cost-effective Corporate Owned Life Insurance policies.
EBS provided AEI with a comprehensive, full service solution for our executives' deferred compensation plan.
Prior to our initial conversation with EBS, our company had transitioned ownership to the next generation. We recognized that in order to meet our future growth plans we would need a program that would allow us to attract and retain key value creators without giving away equity. EBS used a thorough process to develop a comprehensive plan that achieved our objectives while at the same time rewarding performance. I would recommend EBS as a valuable partner.