The CompensationEngineeringTM Approach


The single most predominant reason for employee dissatisfaction and turnover is compensation and benefits. Yet most family businesses never take the time to undertake a comprehensive analysis of their compensation and benefit programs.

 

Our approach is to evaluate existing family business compensation and benefits packages. We assist companies in either spending allotted employee expense dollars more wisely or spending less.

 

Services Provided

   Analyze present benefits and costs versus company objectives.

   Evaluate alternatives.

   Make specific recommendations.

   Assist in the implementation of the recommendations agreed upon.

   Constant updates regarding ever-changing compensation issues.

 

CompensationEngineeringTM Tools

I.  FRINGE BENEFITS  

    Medical Coverages

    Disability Coverages

    Educational Assistance

    Medical Expense Reimbursement

    Achievement Awards

        - Performance, Length of Service, Safety

     The Leveraged ExecutiveLoanTM Program

Dental and Vision Care

Group Carve-Out Plans

Executive Bonus and Split Dollar Plans

Cafeteria Plans

Sick, Personal and Vacation Pay Plans

Spending Accounts  

Dependent Care

II.  CASH COMPENSATION  

    Salary and Wages

    Deferred Compensation

Cash and Non-Cash Bonuses

Employee Loans

III.  RETIREMENT BENEFITS  

    Defined Contribution / Defined Benefit

    SIMPLE Plans / SEP/ 457

    Age Weighted - Cross-Tested - Integrated

The 412(e)LincTM Program

Profit Sharing / 401k & 401A Plans

 

V. Ownership  

    The ESOP

    Incentive Stock Option Plans

    Managed Income Trust

Restrictive Stock Option Plans

Reverse ESOP

A Strategic Approach To

Tax-Qualified Retirement Planning

 

A Three Element Turn Key Process

 

 Study Present Benefits

  Cost vs. Utilization?

 • Are present benefits accomplishing your objectives?

 • Are the proper employee groups covered

 • Employee Perception?

 • Cost Containment?

 

Key to tax planning: Create tax-free cash flow

 Explore Unused Options

· Death Insurance

· Medical Reimbursement

· Pension/Profit Sharing

· Salary Continuation

· Deferred Compensation

· Leveraged ExecutiveLoanTM

 

· Cars, Boats, etc…

· 162 Bonus

· Education

· Loans

· Achievement Awards Program

· 412(e)


 

The Pyramid of Compensation EngineeringTM

The Layers of Benefit and Tax Planning

  Listen Design Implement