I can appreciate your thoughts and concerns. It reminds of a story involving a fifteen year-old and his dad. After graduating from a rather expensive-private high school two years early, the kid came home one evening, and demanded to see his dad's check book. Patiently inquisitive, dad asked, why. His son said, he deserved to know. Again, dad asked why, and his son said, because I've saved you money by graduating two years early and I've earned the right know. He continued, I want to use the money I have saved you for the purchase of a brand new muscle car. Our next-door neighbor bought his son a brand new Camaro. He attended the same school for four years, didn't save his dad the extra money, and still received a new car. Don't I deserve one too, dad? I would like to see the check book, please!
Well son, dad replied. The money you saved is not for me or you alone. We are happy to see that you have done well with school. And we have made a decision on what we are willing to do for you as an acknowledgement of your phenomenal accomplishment. However, it is for the entire family that your mother and I will determine what happens to any and all the money that is generated in this house. Someday when you're living in your own place, you are welcome to make your own financial decisions. Until then, it will be ours to make, not yours. This was obviously a touchy situation. And I think with the right strategy and design, your concerns can be met.
Lately, what has been most effective in the bonus incentive marketplace is the position of a non-taxable gains and tax-free distributions approach. Designing a strategy that provides more income to top level management versus what traditional designs and pretax plans have provided over the past can possibly help you with this. The proper strategy, design, and pre-rollout consensus can considerably help transition you out of your open book percentage dilemma while keeping company morale intact.
We would be happy to learn more about your company's situation and more we'll need to know to help you provide additional value to your company and top-level managers.
Home of the Connection Café.
100 Village Blvd., Suite 200, Princeton, NJ 08540Phone: 609-452-8000 | 888-421-9996 | Fax: 609-452-0474 | email@example.com