Executive Benefit Planning for Privately Held Companies in Arkansas | Louisiana | Texas | Florida | Georgia | Oklahoma

Executive Benefits - The Process

How to Put Together an Executive Benefits Plan:

Attract, Retain, and Reward Top Talent 

Putting together your executive benefits plan

Your key executives are critical to your company’s growth, yet traditional retirement plans like 401(k)s often don’t allow them to save enough—or create the loyalty you need. A Supplemental Retirement Plan (SRP) fills that gap.


At SSG Companies, we design SRPs for companies across Louisiana, Texas, Arkansas, and the Gulf South, helping businesses retain their top leaders and ensure executives have the retirement security they deserve.

The Process

1

Define Objectives 

Start by identifying what the company wants to accomplish. Common goals include: 

  • Retaining key executives 
  • Rewarding performance 
  • Aligning executive and company goals 
  • Providing supplemental retirement income 

2

Select Target Executives 

Not all executives require the same plan. Identify: 

  • Top performers or mission-critical roles 
  • Individuals with unique skills or knowledge 
  • Key contributors to company growth and profitability 

3

Choose the Right Type of Plan 

Common executive benefit structures include: 

Plan Type Key Features
Deferred Compensation Executive defers compensation; company may match; paid later (often retirement)
Supplemental Executive Retirement Plan (SERP) Company promises future benefit without deferral from exec
Executive Bonus Plan (Section 162) Company pays life insurance premiums as bonus; exec owns policy
Split-Dollar Plan Shared ownership of life insurance; recovery of company contributions
Group Carve-Out Plans Enhances group life coverage without discrimination

4

Design Funding Strategy 

Determine how the company will fund the plan: 

  • Corporate-owned life insurance (COLI) 
  • Company cash flow or side accounts 
  • Informal bookkeeping reserves 

Note: Proper funding reduces financial risk and enhances plan sustainability. 

5

Coordinate Tax, Legal, and Compliance Issues 

  • Ensure non-qualified plans comply with IRC §409A 
  • Review ERISA exemptions for select group status 
  • Work with tax advisors and legal counsel to draft agreements 

6

Communicate Clearly with Executives 

Transparency builds trust: 

  • Explain the plan's value and long-term benefits 
  • Provide statements or access to track value 
  • Clarify risks, vesting schedules, and distribution triggers 

7

Monitor and Maintain