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Fulcrum Partners LLC
No part of this document may be reprinted without the express written permission of Fulcrum Partners LLC.
Retaining Employees that Are Key but Are Not Highly Compensated
A Case Study Summary
By Kristine Kopsiaftis Lampert
FulcrumPartnersLLC.com
Securities offered through Valmark Securities, Inc. Member FINRA, SIPC, 130 Springside Drive, Akron, OH 44333-2431, Tel: 1-800-765-5201. Investment Advisory Services offered through Valmark Advisers, Inc., which is a SEC Registered Investment Advisor. Fulcrum Partners LLC is a separate entity from Valmark Securities, Inc. and Valmark Advisers, Inc.
Securities offered through Valmark Securities, Inc. Member FINRA, SIPC, 130 Springside Drive, Akron, OH 44333-2431, Tel: 1-800-765-5201. Investment Advisory Services offered through Valmark Advisers, Inc., which is a SEC Registered Investment Advisor. Fulcrum Partners LLC is a separate entity from Valmark Securities, Inc. and Valmark Advisers, Inc.
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Retaining Employees that Are Key but Are Not Highly Compensated
Companies in a variety of industries such as construction, auto dealerships, or manufacturing, for example, are finding that retaining and motivating key employees is essential for the company to remain both stable and competitive. In some cases, although the employees are key to the organization, they do not meet the top hat definition of, “a select group of management or highly compensated (workers).” When this is the case, a nonqualified deferred compensation plan (NQDC) is not a viable option for retaining and rewarding these employees. In such situations, alternate plan designs can be utilized. Case Study: A full-service logistics company with 150 employees considered its workers as part of evaluating its value proposition. Among the employees, a group of twelve workers were identified as key to business operations. The company sought a way to better retain these valued workers. Within the group of twelve, three employees were highly compensated, but the remainder were not, which limited plan design choices. Using a Nonqualified Incentive Bonus Plan, the company was able to motivate and reward the select group with contributions
No part of this document may be reprinted without the express written permission of Fulcrum Partners LLC.
Securities offered through Valmark Securities, Inc. Member FINRA, SIPC, 130 Springside Drive, Akron, OH 44333-2431, Tel: 1-800-765-5201. Investment Advisory Services offered through Valmark Advisers, Inc., which is a SEC Registered Investment Advisor. Fulcrum Partners LLC is a separate entity from Valmark Securities, Inc. and Valmark Advisers, Inc.
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based on revenue metrics and to retain them with a vesting schedule. Other features that added value to the plan were:
Tax deferred growth of account balances Investment options for account balances (unlike most
incentive plans) Plan balances distributed within a maximum of ten
years for every annual bonus (versus at retirement) Summary Companies of all sizes can use a Nonqualified Incentive Bonus Plan to retain employees that are key to generating productivity and revenue. Depending upon client demographics, either a NQDC plan, a Nonqualified Incentive Bonus Plan, or the use of both types of plans, may be helpful for meeting corporate objectives and rewarding and retaining valued employees. ABOUT FULCRUM PARTNERS LLC:
Fulcrum Partners LLC (https://fulcrumpartnersllc.com) is one of the nation’s largest executive benefits consultancies. A wholly independent, member-owned firm, Fulcrum Partners is dedicated to helping organizations enhance their Total Rewards Strategy. Founded in 2007, today the company has 13 nationwide offices and more than $6B in assets under management. Fulcrum Partners is an independent member of BDO Alliance USA
Learn more about the Fulcrum Partners executive benefits advisory team at Fulcrum Partners Managing Directors nationwide directory.
Fulcrum Partners advises you to always consult your own tax, legal, and accounting advisers.
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No part of this document may be reprinted without the express written permission of Fulcrum Partners LLC.
Securities offered through Valmark Securities, Inc. Member FINRA, SIPC, 130 Springside Drive, Akron, OH 44333-2431, Tel: 1-800-765-5201. Investment Advisory Services offered through Valmark Advisers, Inc., which is a SEC Registered Investment Advisor. Fulcrum Partners LLC is a separate entity from Valmark Securities, Inc. and Valmark Advisers, Inc.
Kristine Kopsiaftis Lampert Page -4
Kristine Kopsiaftis Lampert consults with public and private entities to provide a full range of services with respect to the design and management of the suite of executive benefits programs, in-cluding deferred compensation, after tax plans, and executive life and disability programs. Inspired by her knowledge, diligence, and her skill in hearing both what clients say and fail to say, organizations engage Kristine to provide creative, performance-driven strategies for attracting, retaining, and rewarding
highly compensated executives.
Kristine has in-depth experience in all areas of Corporate Owned Life Insurance programs that include insurance chassis design, investment options, and regulatory and compliance issues. Her extensive nonqualified consulting expertise includes benefit plan design, asset management, and funding administration and security. Kristine has also begun working with companies to provide greater support on the day-to-day management of employee benefit plans and to find ways to save companies money by containing costs without sacrificing benefits. In every capacity, Kristine serves her clients with experience and the utmost attention to detail.
Kristine Kopsiaftis Lampert, Managing Director
561.274.9205
Kristine Kopsiaftis Lampert is affiliated with Valmark Securities, Inc. Securities offered through Valmark Securities, Inc. Member FINRA/SIPC. Investment Advisory Services offered through Valmark Advisers, Inc. a SEC Registered Investment Advisor. 130 Springside Dr., Akron, OH 44333. 800-765-5201. Fulcrum Partners LLC is a separate entity from Valmark Securities, Inc. and Valmark Advisers, Inc.
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No part of this document may be reprinted without the express written permission of Fulcrum Partners LLC.