Key Executive Planning

Key Person Insurance. Important to companies whose leader is important to bringing in and keeping client relationships or leading our team. This insurance would cover the cost of searching for and replacing a new manager to step in if the leader(s) of a company pass away.

Buy Sell Agreements and Funding. Family owned businesses are especially vulnerable should a key person top executive pass away and leave assets or the business to family. It’s important to work as a team—with an attorney experienced in this type of law, your Lions Bridge Financial Advisor on funding this agreement with insurance and the key players on your team. Having a written document that spells out who steps in and runs your business, who buys out family members and for how much is key to keeping your business up and running and reducing the stress to the family, the business and partners that the loss of a key leader will create.

Deferred Compensation Plans: A deferred compensation plan is often established by companies that already have a qualified plan, such as the 401(k), to provide additional retirement benefits to key executives or senior employees. A recent survey by MullenBG showed that 89% of employers competing for talent now offer Deferred Compensation Plans.
A Deferred Compensation Plan represents an agreement where a company promises to pay an employee in the future for services rendered. This allows a company to offer an employee extra income that will not be taxed until some future date, usually upon retirement, death, disability or termination of employment. These plans are not governed by federal pension laws, making them extremely flexible. Their very flexibility—and the associated risks—means that business owners should seek out professional guidance from tax, legal and financial professionals before setting up these plans.

Business Financial Services

Individual Financial Services

Business Services

More Resources

News and Articles