CASE STUDY
CONSTRUCTION COMPANY
SITUATION
Client: Private family-owned company
Annual Revenue: $150+ million
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Client had a non-compliant, under-performing existing Supplemental Executive Retirement Plan (SERP) for 6 executive participants
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Plan was not properly administered or communicated to participants
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Client desired to understand their SERP benefit and possibly add 2 new participants
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Family owners were concerned about retaining executive team members without extending ownership
SOLUTION
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Performed a compliance/performance review of the existing program, amended as necessary
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Redesigned a defined contribution plan for the executive team
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Expanded the plan to the next level of 20+ additional participants with “profit-sharing” participation
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Incorporated elective deferrals of salary and bonus, including the ability to elect in-service distributions for college funding, etc.
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Integrated both plans onto a web-based administrative platform
RESULTS
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Established a multi-tiered retention/reward strategy
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Plan enhanced potential long-term compensation with a vesting schedule that protected the company from short-term employee turnover
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Aligned the interests of executive team with ownership, resulting in “owner mentality” without diluting family ownership
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Improved the employee benefits program by providing individual planning for plan participants