Executive Benefits Survey Results of the 2011 ... - Hay Group

4 Executive Benefits Survey
Prevalence of executive retirement plans differs by industry as the graph below illustrates.
Percent
70%
60%
50%
40%
30%
20%
10%
0%
Executive Retirement Plan Prevalence by Industry
59%
50%
Industrial Consumer
Goods
47% 45%
© 2011 Hay Group. All rights reserved. www.haygroup.com
32%
20%
Health Care Financial Tax Exempt Services
Industry
Organizations have a variety of reasons for providing a nonqualified retirement plan, as the
table below shows.
Executive Retirement
Plan
Objective
President
& CEO
Executive and
Senior VPs
VPs
Division
Heads
Based on
Compensation
Make up for IRS Limits 74% 77% 71% 55% 32% 38%
Bring retirement income to a target
level
33% 87% 71% 44% 23% 15%
Include deferred compensation 32% 90% 80% 72% 38% 30%
Provide "golden handcuffs" to retain
executives
32% 82% 80% 45% 22% 16%
Recruit mid-career executives 26% 73% 78% 59% 32% 24%
Improve early retirement benefits 12% 79% 74% 47% 26% 26%
Include bonuses not covered in
qualified plans
12% 79% 63% 42% 16% 21%
Provide benefits for executives with
insufficient service
8% 75% 67% 42% 17% 17%
Provide retirement benefits to
executives with no qualifed plan
8% 77% 85% 31% 8% 8%
Maintain benefits from executive's
prior employer
6% 78% 67% 33% 22% 33%
"Keep whole" executive transferring
from subsidiaries or other countries
3% 75% 75% 50% 50% 25%