Business
Recruit, Reward, Retain: Executive Bonus, Deferred Comp & Smart Retirement Plans | CGJ Financial
Recruit, Reward, Retain: Executive Bonus, Deferred Comp & Smart Retirement Plans | CGJ Financial
Compete for top talent with executive bonus, deferred comp, and modern 401(k) design. Learn how to recruit, reward, and retain the people who drive growth.
Compete for top talent with executive bonus, deferred comp, and modern 401(k) design. Learn how to recruit, reward, and retain the people who drive growth.
Recruit, Reward, Retain: Executive Bonus, Deferred Comp & Smart Retirement Plans for Growing Companies
Great people don’t just join your company. They stay when the plan is clear.
Salary gets attention. Benefits build loyalty. If you’re competing for leaders, producers, and specialists, you need more than a paycheck. You need a package that rewards performance — and makes staying the obvious choice.
Here’s how growing companies create an edge.
1. Executive Bonus (Section 162) — Simple, Powerful
How it works: The company pays a bonus to fund an executive’s personally owned life insurance policy (usually permanent coverage). The bonus is deductible to the business, taxable to the executive, and often “grossed up” with a second bonus to cover the tax bill.
Why it wins:
Fast to implement — no plan filings required.
Executive owns the policy, making it a valued benefit.
Can be customized with restrictions for retention.
When to consider: You want a meaningful, flexible benefit for a few key people — today.
REBA (Restricted Executive Bonus Arrangement) — Golden Handcuffs
What it adds: Restrictions on policy access (like cash value) until vesting or performance milestones are met. The executive still owns the policy, but your investment is protected.
Why it wins:
Retention + performance alignment without the complexity of qualified plans.
Creates a clear “earn it, then own it” structure that high performers respect.
We’ll design the structure and coordinate terms with your attorney/CPA.
Learn more here: Executive Benefits Solutions.
2. Nonqualified Deferred Compensation (NQDC) — Precision Benefits
What it is: A contractual promise to pay select executives later for services today. Structured under Section 409A, benefits can be tied to tenure, performance, or retirement.
Why it wins:
Targets a select group of top talent.
Defers comp today into future, planned payouts.
Can be tailored for retention, retirement, or succession.
When to consider: You want a high-impact plan for a small group and you’re comfortable with formal plan documents and administration.
3. 401(k) Plans That People Actually Use
A modern 401(k) can be both competitive and cost-effective.
Smart options include:
Safe harbor or stretch-match formulas to drive participation.
Auto-enroll and auto-escalate to boost savings rates.
Pooled Employer Plans (PEPs) for cost and fiduciary relief.
Managed accounts for those who want professional help.
Student-loan match and Roth employer contributions to attract younger employees.
We’ll help you choose what fits your budget, culture, and recruiting goals — and coordinate with your provider.
Explore more: Retirement Planning.
Putting It Together: A Compelling Offer
Foundational plan for everyone: 401(k), HSA/HDHP, and core benefits.
High-impact extras for key people: Executive Bonus/REBA or NQDC.
Clear scorecard: Vesting + performance metrics.
Annual review: Adjust as the company grows.
How CGJ Financial Helps
Blueprint first: Map business goals (profit, growth, hiring) to a benefits strategy.
Compare options: Access to carriers + providers from 15+ A-rated partners.
Coordinate advisors: We align with your attorney, CPA, and plan administrator.
Implement + communicate: Rollout materials your team actually understands.
Quick Owner’s Checklist
Identify the roles you must recruit or retain this year.
Choose one executive benefit to implement first.
Lock a timeline: offer letters, vesting schedules, reviews.
Align legal and tax treatment before funding.
Put benefits on a regular review cycle.
Make Your Offer Impossible to Ignore
Top talent has options. The right package makes yours the clear choice.
Schedule Your Free Consultation and let’s design a strategy that rewards performance, builds loyalty, and keeps your best people long-term.
Recruit, Reward, Retain: Executive Bonus, Deferred Comp & Smart Retirement Plans for Growing Companies
Great people don’t just join your company. They stay when the plan is clear.
Salary gets attention. Benefits build loyalty. If you’re competing for leaders, producers, and specialists, you need more than a paycheck. You need a package that rewards performance — and makes staying the obvious choice.
Here’s how growing companies create an edge.
1. Executive Bonus (Section 162) — Simple, Powerful
How it works: The company pays a bonus to fund an executive’s personally owned life insurance policy (usually permanent coverage). The bonus is deductible to the business, taxable to the executive, and often “grossed up” with a second bonus to cover the tax bill.
Why it wins:
Fast to implement — no plan filings required.
Executive owns the policy, making it a valued benefit.
Can be customized with restrictions for retention.
When to consider: You want a meaningful, flexible benefit for a few key people — today.
REBA (Restricted Executive Bonus Arrangement) — Golden Handcuffs
What it adds: Restrictions on policy access (like cash value) until vesting or performance milestones are met. The executive still owns the policy, but your investment is protected.
Why it wins:
Retention + performance alignment without the complexity of qualified plans.
Creates a clear “earn it, then own it” structure that high performers respect.
We’ll design the structure and coordinate terms with your attorney/CPA.
Learn more here: Executive Benefits Solutions.
2. Nonqualified Deferred Compensation (NQDC) — Precision Benefits
What it is: A contractual promise to pay select executives later for services today. Structured under Section 409A, benefits can be tied to tenure, performance, or retirement.
Why it wins:
Targets a select group of top talent.
Defers comp today into future, planned payouts.
Can be tailored for retention, retirement, or succession.
When to consider: You want a high-impact plan for a small group and you’re comfortable with formal plan documents and administration.
3. 401(k) Plans That People Actually Use
A modern 401(k) can be both competitive and cost-effective.
Smart options include:
Safe harbor or stretch-match formulas to drive participation.
Auto-enroll and auto-escalate to boost savings rates.
Pooled Employer Plans (PEPs) for cost and fiduciary relief.
Managed accounts for those who want professional help.
Student-loan match and Roth employer contributions to attract younger employees.
We’ll help you choose what fits your budget, culture, and recruiting goals — and coordinate with your provider.
Explore more: Retirement Planning.
Putting It Together: A Compelling Offer
Foundational plan for everyone: 401(k), HSA/HDHP, and core benefits.
High-impact extras for key people: Executive Bonus/REBA or NQDC.
Clear scorecard: Vesting + performance metrics.
Annual review: Adjust as the company grows.
How CGJ Financial Helps
Blueprint first: Map business goals (profit, growth, hiring) to a benefits strategy.
Compare options: Access to carriers + providers from 15+ A-rated partners.
Coordinate advisors: We align with your attorney, CPA, and plan administrator.
Implement + communicate: Rollout materials your team actually understands.
Quick Owner’s Checklist
Identify the roles you must recruit or retain this year.
Choose one executive benefit to implement first.
Lock a timeline: offer letters, vesting schedules, reviews.
Align legal and tax treatment before funding.
Put benefits on a regular review cycle.
Make Your Offer Impossible to Ignore
Top talent has options. The right package makes yours the clear choice.
Schedule Your Free Consultation and let’s design a strategy that rewards performance, builds loyalty, and keeps your best people long-term.
