The challenge of hiring and retaining talented executives is not unique to the financial services industry. A compelling executive compensation plan — such as a deferred compensation plan, defined contribution plan, defined benefit plan or supplemental executive retirement plan (SERP) are an integral part of human resources strategy. There are numerous ways to establish and fund these plans, each of which requires diligent attention to contract, tax, regulatory and finance issues.
Funding, in particular, carries compliance, concentration and strategic risk concerns for financial institutions. Our attorneys thoroughly understand the differences in funding between traditional investments (and otherwise impermissible investments), COLI (corporate-owned life insurance), split-dollar plans and other mechanisms. Each funding option presents its own compliance issues, as well as concentration and strategic risk concerns.
The SW&M experts help clients understand the funding mechanism and plan, ensuring that deferred compensation arrangements can serve as a true benefit — rather than an albatross. In addition, regulatory issues regarding the basis for compensation closely affect compensation plans. We also offer unsurpassed expertise for the financial services industry which contains additional scrutiny and prohibitions on certain types of compensation. Our attorneys assist clients in navigating all regulations and help to prevent any violations.