Companies today have many choices in retirement programs. Clark focuses on nonqualified deferred compensation plans or defined contribution plans. Since the advent of the Pension Protection Act of 2006 and FAS 158, most organizations are migrating to defined contribution plans to minimize the financial burden to the balance sheet.

A nonqualified DCP plan gives executives pre-tax deferral opportunities similar to a 401(k) plan. By reducing the amount of current taxable income owed by an executive, and taking into account ERISA exemptions, executives can defer up to 100 percent of compensation into the DCP account.

95 Percent Prevalence

Understandably, the prevalence of Nonqualified DCPs is high at 95 percent of those companies surveyed in the widely distributed Clark Consulting 2007 Executive Benefits Survey. While there are many types of nonqualified DCPs, we devote the majority of our focus to the plans listed below because they offer the greatest benefit to our clients. Plan types include:

• Variable Deferred Compensation
• Supplemental Executive Retirement Program (SERP)
• Performance-Driven Benefit
• Director Fee Deferral