ArticleRecent developments in deferred compensation: Objective: benefit without unnecessary cost
Review articleOpen access
1969/04/01 Full-length article DOI: 10.1016/0007-6813(69)90131-1
Journal: Business Horizons
AbstractThis article reports the findings resulting from a study of deferred compensation plans in 100 major companies. These arrangements have become popular as a way to reward the executive while providing him and the company with maximum tax advantage. The plans are evaluated in terms of their nature, the amounts awarded, method of distribution, and conditions or restrictions. The increase in numbers and types of plans and the expanding scope of participants indicate that deferred compensation is becoming a more meaningful element-of the total executive compensation program. Basically, those who will benefit most are those higher paid executives nearing retirement; identifying these and tailoring arrangements to their future needs-and to corporate interests as well-require thorough and objective analysis. The three most important factors to be considered are imagination and technical competence in design, acceptability to the IRS, and objectivity in application.
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