Participation rates in nonqualified deferred compensation plans for company executives increased by 2 percent between 2012 and 2013, according to new research.
MullinTBG, a Prudential Financial Inc. company (NYSE:PRU), discloses this finding in its 8th annual survey of executive benefits. MullinTBG is a provider of nonqualified executive benefits, with 817 customized plans and more than $25.2 billion in assets at year-end 2013.
The study indicates that participation rates in nonqualified deferred compensation plans (NQDCPs) increased to 46 percent from 43.9 percent in 2012. However, 30 percent of survey webinar registrants observed higher participation, 19 percent higher deferral amounts and a 10.5 percent increase in enrollment.
Similar to previous survey results, participation rates were highest (56 percent) for firms that offered a company match.
The survey also reveals that 95 percent of companies offer NQDCPs to their highly compensated employees, making it the most common executive benefit surveyed. In 2012, about 90 percent of responding companies said they offered a NQDCP.