Sue Holloway, Senior Practice Leader at WorldatWork discusses the differences between benefits for executives and other employees, deferred compensation plans, supplemental executive retirement plans, plan design, and uses of nonmonetary compensation.
…A big learning for me from this video is that a lot of supplemental executive retirement benefits and perks are not guaranteed in the way traditional pension plans are (i.e. they don’t have ERISA protections) if a company becomes insolvent. Many supplemental executive retirement benefits perks are considered unsecured promises to pay, meaning that an executive is at risk of losing some or all or part of their supplemental payouts in the event that a company comes into dire financial straits. In such a case, an executive would have to pursue their promised supplemental retirement benefits the same way any other creditor would. …There is a great article that deep dives into this topic here that I came across while looking to learn more. Check it out, and also watch today’s video below (sharing your thoughts in the comments section):