Study Probes Executive Benefits

Respondents prefer third-party or combined (in-house and third-party) administration, especially for NQDC plans (only 18% are administered exclusively in-house). Among SERPs, 60% are administered by a third-party or through a combined arrangement. These preferences may reflect a need for more sophisticated administration in light of Internal Revenue Code requirements, notes Clark, a unit of Aegon N.V., the Hague, Netherlands. Although the dismal economy over the past 2 years has affected executive benefits, employers continue to be aware of the value of strong, well-funded nonqualified benefits plans, Clark said.

“In this environment it might be tempting to freeze or scale down executive benefits, but generally that is seen as a shortsighted approach,” said Kurt Laning, president of Clark Consulting L.L.C., Dallas. “We feel that the companies that will emerge the strongest from the current turbulence and in the best position to take advantage of the recovery are those with the strongest leadership and teams. So it’s crucial for employers to constantly recruit, reward and retain talented executives.”