Executive Benefits Survey Results of the 2011 ... - Hay Group
Executive Benefits Survey Results of the 2011 ... - Hay Group
Executive Benefits Survey Results of the 2011 ... - Hay Group
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6 <strong>Executive</strong> <strong>Benefits</strong> <strong>Survey</strong><br />
Nonqualified Deferred Compensation Programs<br />
This section details <strong>the</strong> findings <strong>of</strong> voluntary deferred compensation programs, which may or<br />
may not have an employer contribution. Prevalence <strong>of</strong> deferred compensation programs is<br />
53%, slightly higher than nonqualified retirement plans. Prevalence is also higher at lower<br />
executive levels.<br />
Do you <strong>of</strong>fer a nonqualified deferred<br />
compensation plan to executives?<br />
Yes 53%<br />
No 39%<br />
Considering 5%<br />
Not Considering 3%<br />
Who is eligible for <strong>the</strong> plan?<br />
President & CEO 71%<br />
<strong>Executive</strong> and Sr. VPs 71%<br />
VPs 63%<br />
Division Heads 43%<br />
Based on compensation 43%<br />
Code Section 409A imposed strict requirements regarding deferral elections, timing <strong>of</strong><br />
payments and acceleration <strong>of</strong> payments on nonqualified deferred compensation<br />
arrangements. The impact <strong>of</strong> 409A may account for <strong>the</strong> relatively static prevalence <strong>of</strong> <strong>the</strong>se<br />
types <strong>of</strong> arrangements. In addition, <strong>the</strong> restrictions placed on deferral elections and payment<br />
timing may have diminished <strong>the</strong> attractiveness <strong>of</strong> <strong>the</strong>se types <strong>of</strong> programs. Participation in<br />
NQDC programs is on average 39%.<br />
The elements <strong>of</strong> compensation that are eligible to be deferred under NQDC programs are as<br />
follows:<br />
What Type <strong>of</strong> Compensation is Eligible to be Deferred?<br />
Base 89%<br />
STI 79%<br />
LTI - Cash 25%<br />
LTI - Stock 9%<br />
Restricted Stock 7%<br />
Just over one third <strong>of</strong> organizations are making company contributions to <strong>the</strong>ir deferred<br />
compensation programs.<br />
Do you match deferrals?<br />
Yes 36%<br />
No 64%<br />
© <strong>2011</strong> <strong>Hay</strong> <strong>Group</strong>. All rights reserved. www.haygroup.com
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