Beyond cash compensation, the benefits packages that you offer your executives can be critical to recruiting and retaining top talent. As independent consultants, we provide Executive Benefits advice and analysis on retirement plans, including replacement ratios and alternate retirement plan designs. We also have considerable experience in the design of employee stock option plans (ESOPs).
Executive Benefit Plan Consulting & Servicing
Titan Executive Benefits Group offers a full spectrum of services in areas such as the design, implementation, and maintenance of executive benefit plans (“EBPs”). The most common executive benefit plans are non-qualified deferred compensation plans and supplemental executive retirement plans. Our approach results in a Plan customized to:
- Attract, retain and reward senior management employees.
- Be aligned with the sponsor’s culture and overall compensation strategy.
- Be highly visible to, and appreciated by, the selected participants.
- Have a minimum impact on the sponsor’s financial statements.
Comply with income tax, ERISA, and other regulations. (Titan Group does not practice law or accountancy, but supports the sponsor’s professional advisors.)
Be properly administered and communicated with minimum effort by the sponsor’s Human Resources Department.
Retirement Income Replacement Ratio Analysis
A key component to attracting and retaining senior managers is a competitive retirement package. But what does “competitive” mean?
Compensation committees need to know the answer to that question, and the starting point is an Income Replacement Ratio (IRR) analysis. An IRR analysis is a measure of retirement income adequacy. An employee’s IRR is his/her projected retirement income (typically, from Social Security and company-sponsored retirement plans), divided by projected final compensation immediately prior to retirement.
Plan Funding Analysis
Funding vehicles for EBPs fall into two broad categories: taxable investments and corporate-owned life insurance (COLI). The appropriate choice depends upon the nature of the Plan liability, projected timing of Plan benefit payments, the sponsor’s tax bracket and cost of capital. COLI generally has a higher cost structure and less liquidity than taxable investments, but for taxable organizations often provides the most
Employee Stock Ownership Plan (ESOP) Services
Titan Executive Benefits Group provides competent and comprehensive consulting on Employee Stock Ownership Plan (ESOP) issues. We assist our clients by analyzing their business continuity and retirement plan needs, designing a strategic approach, implementing a comprehensive plan, and providing follow-up services, such as participant recordkeeping and fiduciary compliance consulting.
Our considerable experience, knowledge of best practices, and attentiveness to changing trends provide timely guidance to our sponsor’s Board of Directors or the ESOP Committee as it addresses ESOP issues.