Clark Consulting Announces Results of 14th Edition of Executive Benefits — A Survey of Current Trends

DALLAS, TX, December 17, 2009 — Clark Consulting, Inc., today announced the results of the fourteenth edition of Executive Benefits — A Survey of Current Trends. For well over a decade, Clark Consulting’s biennial study has examined data and trends that affect executive benefit plans.

This year’s survey found that although extraordinary developments in the United States economy over the past two years have affected executive benefits, employers continue to recognize the value of well-designed, market-driven executive benefits plans that are adequately funded.

“Given the recent economic challenges, it’s natural for employers to be uncertain about their approach toward executive benefits,” said Kurt Laning, President, Clark Consulting, “but if we look beyond the current turbulence, the companies that will emerge the strongest and in the best position to take advantage of the recovery are those with the strongest leadership and teams. So it’s crucial for employers to constantly recruit, reward and retain talented executives.”

2009 Survey Highlights

Use of NQDC Plans and SERPs Remains Widespread.

• Although nonqualified deferred compensation (NQDC) plan prevalence has decreased since 2007 (95%), it remains high — 85% of responding companies report having NQDC plans.
• 67% of responding companies report having supplemental executive retirement plans (SERPs), similar to the prevalence in 2007.

Informal Funding Increases for NQDC Plans, Decreases for SERPs. Corporate-Owned or Trust-Owned Life Insurance (COLI/TOLI) Remains the Most Commonly Used Funding Vehicle.

• 71% of respondents report informally funding their NQDC plans, up from 62% in 2007 and at the highest level since 2001. This stands in interesting contrast to the apparent decrease in plan prevalence over the same period.
• 39% of 2009 respondents report informally funding their SERPs, vs. 48% in 2007.
• 61% of respondents funding their NQDC plans and 68% of those funding their SERPs use COLI/TOLI. COLI/TOLI remains the most commonly used funding vehicle for both types of plans.

Continued Shift of Plan Administration Responsibilities toward Third-Party

• The percentage of respondents exclusively administering their NQDC plans in-house has dropped from 19% in 2005, to 15% in 2007 and 3% in 2009. This has been accompanied by corresponding increases in the prevalence of third-party administered and combination (in-house and third-party) administered plans.
• 32% of respondents sponsoring SERPs administer their plans in-house, slightly higher than in 2007 (30%) but lower than the levels seen in 2005 (44%).
• In particular, the decrease in in-house administration since 2005 may reflect a need for more sophisticated administration in light of the requirements of Internal Revenue Code section 409A.

For more information about Clark Consulting’s 14th Executive Benefits — A Survey of Current Trends, visit our website at www.clarkconsulting.com/execbenefitssurvey or contact us at requests@clarkconsulting.com. Our experienced consultants can help you dissect the information and put it into the context of your business.

Clark Consulting, headquartered in Dallas, is an AEGON company. AEGON N.V. is an international life insurance, pension and investment group based in The Hague, The Netherlands, with businesses in over twenty markets in the Americas, Europe and Asia.

Clark Consulting is a leading source of strategic financing solutions such as bank-owned life insurance (BOLI) and corporate-owned life insurance (COLI) for inefficiently funded and unfunded liabilities that result from executive and employee benefit programs.

Since 1967, Clark Consulting has helped place thousands of benefit plans and serves as the record keeper for billions in assets for leading American corporations and banks.

Securities products and services are offered through Clark Securities, Inc., DBA CCFS, Inc., in Texas: 2100 Ross Avenue, Suite 2200, Dallas, TX 75201-7906. Phone: 800.999.3125. Member FINRA and SIPC.