CASE STUDY
HEALTHCARE COMPANY
SITUATION
Client: Privately funded Co-Op partnership
Annual Revenue: $100+ million
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CEO Search was in process
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Market revealed a gap between desired and expected salary
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Presented Supplemental Executive Retirement Plan (SERP) as possible solution to minimize the compensation gap and create a competitive compensation structure to attract the best talent possible
SOLUTION
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Presented an executive retention/reward solution to the Compensation Committee
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Designed and implemented defined benefit-targeted SERP for the executive team (including the incoming CEO)
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Integrated an elective deferral of compensation in excess of qualified plan caps for the next level of management with an in-service distribution option
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Implemented an investment and principal risk-free return program utilizing a top-rated portfolio-based earnings rate
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Program included an employer match for all participants
RESULTS
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Created a tiered retention/reward program to attract executive talent and retain key management
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Provided a “risk-free” turbocharged retirement savings opportunity
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Provided the client with a focused long-term compensation tool for facilitating executive succession strategy
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Finance vehicle provided present value cost recovery for the client
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Structured program within a Rabbi Trust to maximize benefit security for plan participants